MCI WorldCom has agreed to pay $200m (£126m) to Cable & Wireless (C&W) to settle a lawsuit it faced after selling its internet business to the UK-based operator.
C&W sued MCI WorldCom last April claiming that the US operator "failed to transfer MCI's internet customer base" after its US internet business was bought by C&W for $1.75bn in September 1998. C&W said this action had impeded its entry into the US internet business.
Mike McTighe, chief executive of C&W's global operation, said today: "We are pleased with the settlement and can now put this episode behind us."
MCI was forced to sell its internet business by European regulators ahead of its merger in 1998 with WorldCom.
Today's $200m out-of-court settlement is in addition to a $23m payment to C&W in December 1999 relating to C&W's revenue falling below projections made at the time of the original internet business purchase.
C&W has 1300 ISP customers and 3300 corporate customers in the US.
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