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Major Business Deals and Developments in the Southeast Region

Strategic Insights

— 2 min read

As the business landscape in the Southeast continues to evolve, significant deals and developments have emerged, shaping the region's economy. MCI Communications Corp. has secured a record-breaking five-year contract with CSX Corp. to manage its data and voice communications networks, worth over $350 million. Meanwhile, Savannah Bancorp Inc. is pursuing a merger with Bryan Bancorp of Georgia Inc., with shareholders expected to vote on the deal in the fourth quarter. Additionally, the University of Georgia has announced a unique MBA program in partnership with PricewaterhouseCoopers, catering to management consultants employed by the accounting firm.

Key Takeaways:

  • MCI Communications Corp. has won a five-year contract valued at over $350 million to manage CSX Corp.'s data and voice communications networks, the largest deal in the Southeast for MCI's 4,000-person business markets unit.
  • The contract will involve MCI engineers and network specialists working with CSX to design and manage the network from CSX's data center in Jacksonville and MCI's Network Operations in Cary, N.C.
  • Savannah Bancorp Inc. is proceeding with its acquisition of Bryan Bancorp of Georgia Inc. and expects shareholders to vote on the merger in the fourth quarter, with Bryan shareholders receiving 1.85 shares of Savannah common stock for each share of Bryan common stock.
  • The University of Georgia and PricewaterhouseCoopers have launched a two-year MBA degree program for management consultants employed by the accounting firm, with students meeting in virtual classrooms and communicating with faculty via e-mail and other online connections.
  • The U.S. Justice Department has failed to secure funding from Congress to oversee the Teamsters union's new presidential election, with a federal judge giving the government until Wednesday to find money to ensure the election's fairness and honesty.
  • Allstate Corp. has received a federal charter to run a thrift (savings bank or savings and loan) specializing in serving consumers, amid a trend of insurers seeking to manage life insurance policy proceeds for beneficiaries.

Statistics:

  • The CSX-MCI contract is valued at over $350 million.
  • MCI has about $20 billion in annual revenues, while CSX had revenues of about $10.62 billion in 1997.
  • The merger between Savannah Bancorp Inc. and Bryan Bancorp of Georgia Inc. is expected to result in Bryan shareholders receiving 1.85 shares of Savannah common stock for each share of Bryan common stock.
  • PricewaterhouseCoopers' Management Consultant Services employs 25,000 people worldwide, including over 660 partners and consultants in Georgia.
  • The U.S. Attorney's Office in New York estimates a need of $8.6 million to oversee the Teamsters union's new presidential election.

Sources:

  • "MCI Wins Record Contract from CSX" (Exact date not provided)
  • "Savannah Bancorp Seeks Shareholder Vote on Bryan Bancorp Merger" (Exact date not provided)
  • "University of Georgia Launches MBA Program for PricewaterhouseCoopers Consultants" (Exact date not provided)
  • "Justice Department Fails to Secure Funding to Oversee Teamsters Election" (Exact date not provided)
  • "Allstate Receives Federal Charter to Run Thrift" (Exact date not provided)
  • "Georgia-Pacific Agrees to Pay $23.2 Million for Joint Venture" (Exact date not provided)
  • "Ziff-Davis Invests $5 Million in Deja News" (Exact date not provided)

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