Verizon, the US telecoms giant, has set a closing condition on its $8.5bn takeover of MCI. It will not be subject to corporate governance principles that were adopted by the former WorldCom following its accounting scandal and emergence from bankruptcy.
Adopting the principles, which were created by MCI’s court-appointed corporate monitor, former Securities and Exchange Commission chairman Richard Breeden, would have forced Ivan Seidenberg to split his dual role as chairman and chief executive of Verizon, among other things.
The principles, which at the time were hailed as a model for other companies, also call for a company’s board to consist entirely of independent directors other than the chief executive, and gave shareholders the right to submit resolutions and nominate board members.
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