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COPYRIGHT 2002 PR Newswire Association LLC
COVER: Is Big Business Bad Business? (Atlantic, Asia editions) The mega-mergers of the late 1990s are unraveling week by week, making WorldCom's scandalous bookkeeping just the latest reminder that the "big-bang" buys were not always wise. Some of the merger-and-acquisition giants resorted to fraudulent accounting to cover up poor results. Others just limped along, never realizing the highly touted economies of doing business as a mega-company. If history holds true, roughly two-thirds of these newly merged giants will lose value on the stock market, reports European Business Editor Karen Lowry Miller. In time, every merger mania produces a counterwave of de- mergers.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020630/NYSU003 )
Dialing The Wrong Numbers. WorldCom was probably doomed, even without last week's scandal, reports Wall Street Editor Allan Sloan. Huge debt, a lagging telecom industry and a $366 million loan to a former WorldCom chairman discouraged investors from the once-hot...
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