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TELECOMS Digex Deal Should Give WorldCom A Data Boost.(A)
Byline: Reinhardt Krause
When Mark Shull starts working for Bernie Ebbers, it looks like the chief executive of Digex Inc. will still run his own show.
That could be key to making WorldCom Inc.'s latest acquisition a success.
The No. 2 long-distance phone company is set to gain a controlling interest in Digex, which manages Web sites for large companies. The transaction is expected to close by midyear.
Ebbers, WorldCom's chief executive, covets Digex. He needs it to offer value-added services over WorldCom's global network.
To make the deal work, Ebbers needs Digex's top executives, especially Shull, to stick around, says James Linnehan, analyst at Thomas Weisel Partners LLC.
"Mark's going to have a lot of autonomy," Linnehan said. "WorldCom's going to give it to him because of Mark's team's product and industry knowledge."
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