Bell Atlantic executive gets key post, shifting balance of power in Nynex deal
Article Abstract:
Bell Atlantic is gaining more control over the new company resulting from its impending merger with Nynex. One of its officials, Lawrence Babbio, was named to oversee the combined networks as well as global wireless services in the wake of the unexpected retirement of Nynex executive Richard Jalkut. Bell Atlantic officials now control most key positions in the new RBOC. Former Bell Atlantic CEO Raymond Smith will be CEO of the combined companies for a year, then turn over the position to Ivan Seideberg of Nynex. However, Mr. Jalkut's departure give former Bell Atlantic executives an edge in the board. While the two RBOCs had originally talked of a forming a third company in which each would have equal stakes, Bell Atlantic acquired Nynex and has clearly become the stronger of the two. In related developments, New York regulators ordered Nynex to pay its customers rebates for poor quality of service, an issue that might threaten the impending merger.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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US West, AirTouch fail on exemption
Article Abstract:
US West's plans to sell its cellular business to AirTouch Communications, appears to be put on hold, after the companies failing to win a tax exemption. The companies had applied to receive an exemption from a new law that brought to an end the Morris Trust tax-free transaction. Air Communications and U S West did not meet the Apr 16, 1997 cutoff for the tax-free status. The cutoff apparently caught the companies by surprise and they immediate issued a press release at 11:30 pm on Apr 17, declaring their intentions. The companies will now have to agree on a new purchase pact or start over with new plans altogether. U S West and AirTouch Communications are still planning to continue their nationwide joint venture to offer cellular phone service.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Bell Atlantic, Nynex agree to measures aimed at fostering rivalry in Northeast
Article Abstract:
The FCC has imposed several provisions on the merger of Bell Atlantic an Nynex prior to its granting its approval to the $23 billion deal. The companies have agreed to provide a uniform electronic system that their competitors will be able to use to switch customers, order services and complete other functions that are necessary in order to provide local-phone services. A second measure agreed to by the bells is to charge its competitors prices that are based on forward looking cost as opposed to embedded costs. The companies will be held to the conditions placed on them for the first four years of their merger. This will encourage their rivals to act quickly in entering the local-phone market.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Comment about this article or add new information about this topic:
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