MCI WorldCom
MCI (formerly WorldCom or MCI WorldCom ) was the world's third largest telephone company with headquarters in Ashburn , Virginia .
The takeover of MCI by WorldCom and the merger to form MCI WorldCom was the most expensive company takeover to date , at around DM 60 billion . In Germany there was MCI WorldCom Deutschland GmbH , since the end of 2004 MCI Deutschland GmbH . Since January 2006 it has been operating under the name Verizon Deutschland GmbH in Germany .
Stock market scandal and consequences
In the summer of 2002, the company triggered one of the world's largest stock market scandals. On July 21, 2002, it filed for bankruptcy protection under US bankruptcy law in the New York South Bankruptcy Court. Accounting errors There were a total of 11 billion US dollars revealed by the Securities and Exchange Commission. The company's founder , who was then CEO of the company, Bernard Ebbers , was sentenced to 25 years in prison; then Chief Financial Officer Scott Sullivan for 5 years. After 1 ½ years of bankruptcy protection (" Chapter 11 "), MCI was restructured and taken over by Verizon Communications . In January 2006, the merger between Verizon Communications and MCI was completed. The new business unit operates under the name Verizon Business , which is partially divided into national companies. For Germany, this is Verizon Deutschland GmbH.
The stock market scandal was one of the decisive factors behind the adoption of the Sarbanes-Oxley Act for regulation and supervision. a. by companies whose shares are traded on stock exchanges in the United States.
See also
Individual evidence
- ^ Christian Brusis, Wedding for Elefanten - Boom bei M&A in M&A Review , 1/1998, pp. 10-11
- ↑ Article Time Online
- ↑ Court of Justice of the European Communities: Judgment of September 28, 2004 file number T-310/00 , consulted on July 22, 2011
- ^ Report from manager-magazin.de
- ↑ Verizon completes MCI acquisition for $ 8.5 billion dpa-AFX