AT&T head's surprising admissions in SBC talks
Article Abstract:
AT&T's chairman, Robert E. Allen is embarking on a breathtaking gamble by proposing the merger of his company and SBC Communications. Allen has admitted that in order for his company to compete in a deregulated market, it will need a local telephone partner. He has also stated that John R. Walter, his designated heir, does not necessarily have to run the combined company. Consequently, if a deal with SBC is not engineered within a few weeks, AT&T may be faced with a future holding no plan of strategy or a viable leader. AT&T's proposed merger with SBC may prompt other long distance and local phone companies to consider a merger. The merger may take as long as two years if the Justice Dept and other regulators decided to closely scrutinize the deal.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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In unusual move, F.C.C. Chief criticizes a possible deal
Article Abstract:
FCC Chmn Reed E. Hundt is expected to speak out in disapproval of a merger between AT&T and SBC Communications. It is very unusual for the FCC to prejudge a corporate merger prior to its being formally proposed. However, Mr. Hundt believes that the executives of AT&T and SBC should know how the government would view a merger of the companies, based on current antitrust laws. According to Robert E. Allen, AT&T's chairman, the $50 billion dollar merger would stimulate competition in the local phone market. In his Jun 19, 1997 speech to the Brookings Institution in Washington, Mr. Hundt will rebuttal Mr. Allen's remarks. Mr. Hundt has stated that the merger would eliminate rivalry in home markets, which is what the FCC wants to encourage.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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