MCI gets court approval to sell Embratel stake to Telmex

By Jeff Pines

Washington, April 28 - MCI, formerly WorldCom Inc., said the U.S. Bankruptcy Court for the Southern District of New York approved the sale of its 51.7% voting stake in Embratel Participações to Telefonos de Mexicos, SA de CV for $400 million.

Embratel is a Brazilian voice and data communications company with its own management and workforce.

The sale is subject to legal and regulatory approvals. Telmex originally agreed to pay MCI $360 million for the stake, but it raised its offer after the company received a better bid from Sao Paulo, Brazil-based Calais Participacoes, SA.

MCI is an Ashburn, Va.-based telecommunications provider.

WorldCom filed for Chapter 11 in July 2002. It emerged as MCI on April 20. Its Chapter 11 case number is 02-13533.

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