Slow approval of WorldCom deal likely; planned acquisition of MCI to face tough scrutiny by Federal regulators

Article Abstract:

Regulatory approval of WorldCom's $37 billion MCI takeover is likely to take time. Both the FCC and the Justice Department have said they will examine the deal closely, and even though few observers believe the acquisition will be disapproved, WorldCom's expectation that the process will be concluded by the middle of 1998 seems optimistic. The Justice Department's investigation has already begun, and one problematical area could be the combined companies' Internet data-transmission business. The combined company would oversee more than half of Internet traffic. Regulatory uncertainties and selling pressure from takeover traders combined to drive WorldCom's price down 75 cents on Nov 11, to $30.25. The stock lost $2.125 on Nov 10. MCI shares closed unchanged on Nov 11, at $41.50.

Telecommunications, Telephone Communication, Company acquisition/merger, United States. Federal Communications Commission, Investigations, United States. Department of Justice, WCOM, MCI Inc., MCI Communications Corp., MCIC

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FCC delays Bell Atlantic-Nynex merger; regulators push to ensure local phone markets will be open to rivals

Article Abstract:

The FCC has delayed the $23 billion merger of Bell Atlantic and Nynex until the companies' local telephone markets have been open to their competitors. The companies' lawyers have been negotiating with the FCC's staff lawyers over conditions that will have to be met. One such condition would require the combined company to allow its rivals to use its operational support systems. This is a complex interface that allows new customers to be connected to the Bell network. A number of reporting requirements are also under discussion. These will provide the FCC with updates on how quickly Nynex and Bell Atlantic are moving to accomodate their rivals. Officials from both Bell Atlantic and Nynex have stated that they are confident of winning the FCC's approval.

COMMUNICATION, Communications, Broadcasting and Telecommunications, Bell Atlantic Corp., BEL, NYNEX Corp., NYN, Company Acquisition/Merger

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