Faced with falling sales and $30 billion in long-term debt, WorldCom needs to find ways to save cash to alleviate concerns about its financial viability.

Such concerns have driven the stock down more than 90 percent in the past year to an all-time low of $1.08. The stock has since crept higher on the expectation that WorldCom will strike a new deal with bankers for reserve credit lines.

Under the plan, which was expected, MCI holders of record will still be paid their 60 cent-a-share dividend due on July 15.

Each MCI share (MCIT) will be converted into 1.3594 shares of WorldCom on July 12, which amounts to a necessary 10 percent premium dictated by original terms of the tracking stock plan.

WorldCom's ticker will remain "WCOM" (WCOM) , and shareholders don't need to take any actions, the company said. The plan doesn't affect customers of WorldCom or MCI.

On Wednesday, shares of WorldCom, which reflect data, Internet, international operations and corporate long distance, gained 23 cents to $1.65.

MCI's tracking stock, which follows WorldCom's consumer long distance business, rose 77 cents to $2.82.