Timing of AT&T deal still uncertain
By TeleGeography on December 18th, 2006 Via: TeleGeography CommsUpdate
The proposed merger of US telcos AT&T Inc and BellSouth could be hit by further delays following a legal review of two earlier deals. Beta News reports that District Judge Emmet Sullivan is currently studying the approval process surrounding the 2005 takeover of AT&T Corp by SBC (to create AT&T Inc) and the merger of MCI into Verizon Communications. His findings may have implications for the AT&T/BellSouth deal which is waiting for approval by the FCC. The review of the 2005 mergers has found that in the Verizon/MCI case at least a necessary court review did not take place as called for under a 2004 amendment to the Tunney Act, which requires federal courts to ensure that mergers are conducted in the public interest. The US Justice Department is said to be reviewing the AT&T/BellSouth deal to ensure that it complies fully with the revised Tunney Act and this could lead to further delays to a deal which has already dragged on for longer than expected.
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