Also ...

MCI Communications Corp. reported a 6.7% decline in second-quarter profit, reflecting the trouble besetting MCI as it tries to break into the local phone business. The nation’s second-largest long-distance company earned $280 million, or 40 cents a share, compared with $300 million, or 43 cents a share, a year ago. . . . AT&T; Corp., which two weeks ago ousted the heir apparent to its top executive post, said it has selected two executive search firms to help it find another candidate for the job: Chicago-based Spencer Stuart, which helped AT&T; in its ill-fated decision to pick John R. Walter, and Heidrick & Struggles Inc., also based in Chicago. . . . New York State Electric & Gas Corp. said its board rejected CalEnergy Co.’s bid to acquire the utility for $3.3 billion in cash and assumed debt, saying CalEnergy’s offer doesn’t reflect the true value of its shares. . . . Paul Allen, the billionaire investor and co-founder of Microsoft Corp., consolidated his investment companies and will manage everything he owns, from high-technology companies to professional sports teams, through one company. The Paul Allen Group, which had managed Allen’s extensive holdings, was dissolved, and its president and chief executive, Vern Raburn, resigned to pursue other interests, Allen said. Vulcan Northwest Inc. will manage those investments, as well as Allen’s sports and entertainment investments, including the Portland Trail Blazers basketball team and the DreamWorks SKG film studio.