Francis Mackay the group's chief executive hopes to bring the group's entire $2

Francis Mackay, the group's chief executive, hopes to bring the group's entire $2.5bn (pounds 1.5bn) purchasing into similar arrangements.The initial agreement with Kraft covers Compass's European operations, which buy 2,500 tonnes of coffee a year. COMPASS, the catering group, has struck a ground-breaking global supply deal to source all the coffee it buys from one supplier, slashing its purchasing costs. "Customers won't have to be in the country's financial capital to get our unique telecoms service," said Mr Strong.The network will pit MCI against incumbent rivals such as British Telecom, Deutsche Telekom and France Telecom in the battle for large corporate accounts - one of the fastest-growing telecom markets.. This allows WorldCom to lease unused lines - known as dark fibre - from Racal rather than having to lay the fibre itself.Liam Strong, the former Sears executive who runs MCI's international operations, said that outside the UK the company would build most of the network itself.Although MCI refused to say how much the project would cost, it is likely to swallow up most of the $1bn of annual capital spending it has earmarked for its international operations.The networks, which will be up and running by the end of next year, will allow MCI to offer seamless managed telecom and data transmission services to corporate customers. Two-thirds of the business are considered core and only one-third is still earmarked for disposal.The latest acquisition is being funded by a new pounds 250m multi-currency bank facility in Germany, and raises gearing to about 50 per cent. Glynwed will continue its programme of share buy-backs but it could also afford a further acquisition in the pounds 50m range, said Mr McGrath. The shares, which stood at almost 300p six months ago, rose 17.5p to 172p..

MCI WORLDCOM, the US telephone giant, is to double the size of its long-distance network in Europe over the next year in an aggressive attempt to take on rivals such as British Telecom, writes Peter Thal Larsen. MCI yesterday announced plans to build national long-distance networks in the UK, France and Germany, adding 3,950km to its existing 3,200km network which stretches between major European cities. As part of the move, WorldCom has signed a 25-year contract with Racal Telecom to build up its network in the UK. Oppenheim, and a group of German private investors, all of whom have agreed to the sale. The private investors will, however, retain two non-core businesses making dental implants and waste management products, which together contributed about pounds 1.4m on sales of pounds 35m last year.The latest deal brings Glynwed to the half-way point in its repositioning programme that was launched at the end of 1996. The company was ready to launch a price war in Toystack and House of Toys if rivals Woolworths and Argos cut prices, he said.. GLYNWED, THE West Midlands engineering firm, yesterday followed its recent disposal of pounds 160m worth of businesses by paying pounds 174m (486m dm) for Friatec, a German-based company making fittings for the gas and water industries.

"They shot themselves in the foot with the Toystack problems, and this has been compounded by market weakness," said Brian Rayner at broker Peel Hunt.Mr Dyer said that a turnaround in the second half hinged on Christmas trading. The company was ready to capitalise on Britain's latest yo-yo craze with a dedicated trading area in the Regent Street store. The deal will make Glynwed the largest supplier of plastic pressure-pipe systems in the world and will be earnings enhancing in the next full financial year, said William McGrath, the finance director. Friatec is a quoted German company but more than 95 per cent of the shares are held by a subsidiary of an unquoted investment bank, Sal. Friatec made a profit of pounds 20m on a turnover of pounds 232m last year and is expected to produce similar results this year. However, My Dyer warned that he was not expecting a bumper festive season.