MCI, Nextel Talks

MCI WorldCom Inc., the No. 2 U.S. long-distance company, is in preliminary talks to buy wireless phone company Nextel Communications Inc., people familiar with the matter told Reuters. The companies declined comment. A deal could be blocked by several factors, including price, Nextel’s substantial $7.7-billion debt, and the aversion of MCI Chief Executive Bernie Ebbers to acquisitions that hurt the company’s profit, industry sources said. For more than a year, Nextel has been viewed as ripe for a takeover and has been seen as a strong fit with MCI WorldCom, which has no wireless assets. Nextel could fetch as much as $55 a share, or about $15.8 billion, some analysts said. Nextel closed down 44 cents at $39.19, while MCI slipped $2.94 to close at $89.56, both on Nasdaq.