Posted on 06/04/2004 9:42:41 AM PDT by em2vn
Edited on 06/04/2004 9:45:57 AM PDT by Admin Moderator. [history]
SBC board member a big investor in MCI - David Lazarus Friday, June 4, 2004
An SBC board member is also one of the largest investors in rival MCI -- a situation that Wall Street analysts and experts in business ethics say represents a clear conflict of interest.
Mexican billionaire Carlos Slim, 64, the richest man in Latin America and a major telecom investor, has sat on SBC's board since 1993. He served until last month as chairman of Telmex, Mexico's largest phone company, in which SBC holds an 8 percent stake.
In recent months, Slim has snapped up shares of MCI as the company emerged from bankruptcy proceedings. He and entities he controls now own almost 14 percent of MCI's stock, according to regulatory filings.
No laws apparently are being broken, and Slim's stake in MCI, worth more than $600 million, is condoned by SBC's corporate code of ethics. But observers say SBC shareholders nevertheless have reason for concern.
(Excerpt) Read more at sfgate.com ...
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