WASHINGTON-The U.S. Department of Justice gave its approval to the merger of Bell Atlantic Corp. and GTE Corp., said the companies.
The two companies and DOJ agreed to a consent decree to dispose of the companies’ overlapping wireless properties. No other conditions were imposed on the merger.
“When we announced the merger, we knew we would need to address certain issues related to the companies’ wireless overlaps,” said James R. Young, executive vice president and general counsel of Bell Atlantic. “The decree gives us full flexibility to clear wireless conflicts by disposing of either cellular or PCS properties. It also allows us to retain 10 MHz of broadband spectrum in areas where we choose to sell our PCS properties.”
Shareholder voting on the merger is under way by both companies and will be completed at their annual meetings on May 18 and May 19.
On a related front, the Senate Judiciary antitrust subcommittee last week approved a bill setting strict time limits on Federal Communications Commission review of telecom mergers.
The bill puts a 90-day limit on FCC review of small mergers that do not involve antitrust review and a 180-day limit on larger deals requiring antitrust scrutiny.
A safeguard provision is included to give the FCC more time, subject to approval by a majority of the five commissioners.
Consumer advocates say the bill will encourage firms to delay the FCC review process.
Additionally, DOJ announced that Fox Paine Capital Fund L.P. has abandoned its efforts to purchase the cellular operations of Century Telephone in Fairbanks, Alaska. Under the restructured deal, Fox Paine’s subsidiary, ALEC Acquisition Corp., will no longer acquire Pacific Telecom Cellular of Alaska RSA #1 but will still acquire PTI Communications of Alaska Inc.
“By not allowing Fox Paine to acquire Century Telephone’s cellular system in Fairbanks, competition will be preserved,” said Joel Klein, assistant attorney general for antitrust.
