[lbo-talk] MCI to pay $500m

[Nomiprins at aol.com]

In a message dated 5/19/2003 3:41:45 PM Eastern Daylight Time, 
dhenwood at panix.com writes:


> [Nomi, how's this compare with, say, lost market value?]
> 

WorldCom (I really can't get used to calling them 'MCI') stock reached a high 
of 64 in 1999. Its market cap, or value, at the time was $180 billion. When 
the stock fell to 9 cents at bankruptcy, that market cap fell below the $500 
million fine.

So, let's see: adding up that $180 billion + $11 billion in 'misleading' 
revenues + $50 billion in goodwill that went to zero  = $241 billion in 
evaporated value. (Not including the $41 billion in debt they don't have to 
pay back)

The fine is two-tenths of one percentage point of value lost.

Nomi

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