Shares in global telecoms firms WorldCom and Lucent, which together employ more than 1,000 staff in Dublin, slumped more than 10 per cent yesterday on grim economic and corporate news.
WorldCom shares lost almost a fifth of their value when the company disclosed it was the subject of an inquiry into accounting procedures and loans to executives.
The firm, which provides telecoms services to corporate customers here, said the Securities and Exchange Commission (SEC) had requested a range of financial information and its tracking of analysts' earnings estimates. The SEC also asked for information on multimillion-dollar loans to WorldCom chief executive, Mr Bernie Ebbers, and others.
WorldCom said it believed all of its policies, practices and procedures had complied, and continued to comply, with all applicable accounting standards and laws. It said it intended to co-operate with the Commission's inquiry and would respond to the request as promptly as possible.
Shares in WorldCom recovered somewhat later in the day and were down 13 per cent at $7.82 as the Irish stock market closed.
Meanwhile, Lucent cut its quarterly revenue forecast and said its return to profitability would be delayed until fiscal 2003. The firm, which employs almost 900 staff in Dublin and is undergoing a major restructuring, did not rule out further action to cut costs.
Lucent shares were down 12 per cent at $5.50 as the Irish stock market closed last night.
