Sprint Chief Warns of Merger Opposition

In an apparent step back from previous upbeat predictions, Sprint Corp. Chief Executive and Chairman William Esrey said that government opposition to the company’s proposed merger with WorldCom Inc. remained steadfast, and that he is not certain the $120-billion deal can win approval. “It remains unclear if we will or will not get the necessary government clearances to implement the merger,” Esrey told shareholders at the company’s annual meeting. Esrey said senior officials at the U.S. Department of Justice were “taking seriously” their staff’s recommendation to block the merger. He said that a decision by the Justice Department should come in the next few weeks, and that more top-level meetings were planned. The European Commission has a deadline of July 12 to make a ruling on the proposed merger, and is expected to take its lead from the Justice Department, Esrey said. Merger opponents fear that a combination of Sprint and WorldCom would create too great a concentration in the Internet backbone business. Westwood, Kan.-based Sprint closed down 13 cents at $63.63 on the New York Stock Exchange. Clinton, Mo.-based WorldCom rose 13 cents to $43.69 on Nasdaq.