WorldCom CEO Responds To President Bush In Letter

WorldCom

Sidgmore said he and WorldCom's current management team were "equally surprised and outraged."

Sidgmore reiterated earlier pledges to work with the president and government agencies investigating the fraud charges against the carrier.

"This letter reaffirms our commitment to working with you and the appropriate agencies to investigate this serious matter, and to set an example by accepting responsibility and taking decisive action."

Sidgmore cited such actions as the dismissal of CFO Scott Sullivan; close discussions with its banks to secure additional lines of credit; and the hiring of William McLucas, former chief of the Enforcement Division of the Securities and Exchange Commission, to conduct a "rigorous" independent investigation of the $3.8 billion in hidden expenses.

The Securities and Exchange Commission filed fraud charges against WorldCom earlier this week, and the House Financial Service Committee decided on Thursday to issue subpoenas to Sidgmore, hired as CEO in April; former CEO Bernard Ebbers; Sullivan, who was terminated as CFO on Tuesday; and Jack Grubman, an analyst at Salomon Smith Barney.

Grubman downgraded WorldCom's stock rating to underperform from neutral on Monday, a day before WorldCom revealed it had improperly accounted for almost $4 billion in expenses in 2001 and first quarter 2002.