IDT eyes WorldCom's phone businesses

IDT Corp, an acquirer of telecommunications assets from distressed companies, said it plans to offer US$5 billion for WorldCom Inc's long- distance and local-telephone businesses.

IDT sent WorldCom Chief Executive John Sidgmore a proposal to acquire the MCI consumer and small-business division, as well as the MFS local-phone network and Brooks Fiber Inc unit, IDT spokesman Gil Nielsen said.

WorldCom is trying to sell its wireless operations and businesses in Japan and Latin America to help repay US$30 billion in debt after disclosing last week that it hid US$3.85 billion in expenses. The Clinton, Mississippi-based company said today it's not interested in selling MCI or MFS, which were acquired for a total of more than US$62 billion.

"It is highly unlikely we would consider selling any of our core assets, such as MCI or our local business," WorldCom spokesman Brad Burns said in an interview.

Shares of Newark, New Jersey-based IDT fell US$0.41 to US$16.42. They've climbed 30 percent in the past year.