GCI to Acquire Control of Fiber Optic System.

• Position: Brief Article

General Communications Inc. recently announced it has agreed to acquire from WorldCom Inc. an 85 percent controlling interest in the 800-mile fiber optic cable system that extends from Prudhoe Bay to Valdez via Fairbanks. Under terms of the agreement, GCI will issue to World Com shares of a new series of Class C preferred stock valued at $10 million. The stock is convertible at $12 per share into GCI Class A common stock. The new series is non voting and pays a quarterly cash dividend of 6 percent.

GCI said it plans to enhance the system and incorporate its operation into GCI's robust operations control system. These enhancements will improve GCI's voice, Internet and data services in Interior Alaska, as well as third-party services that utilize capacity on the fiber optic system. "As one of our largest...