*Bell Atlantic, Vodafone Near Deal
September 12, 1999
Filed at 8:05 p.m. EDT
By The Associated Press
NEW YORK (AP) -- Bell Atlantic Corp. acknowleged it is in talks with
Vodafone AirTouch PLC to combine their U.S. wireless phone
operations to form a fierce competitor to rivals Sprint Corp. and AT&T
Corp.
A deal could be signed as early as this week, according to a person
familiar with the negotiations.
Bell Atlantic said in a statement Sunday that it was in discussions with
Vodafone AirTouch ``regarding the possibility of a U.S. business
relationship.' Vodafone, the world's largest cellular phone company,
confirmed the talks nearly a week ago.
``Since so much is being written, at this point, we felt it would only be fair
to at least acknowledge we're in talks,' said Susan Kraus, a
spokeswoman for New York-based Bell Atlantic, the nation's largest
local telephone company.
Kraus said the company would have no further comment until a definitive
agreement was reached or talks have ended.
Should a deal be reached, Bell Atlantic, which was trumped by
Vodafone earlier this year in a bidding war over AirTouch
Communications, would effectively get what it was after: AirTouch's
West Coast cellular network.
The deal being discussed would combine Bell Atlantic's East Coast
operations with Vodafone AirTouch's business in the southwestern U.S.
to create a separate company with a nationwide mobile-phone network
that could pose a stiff challenge to U.S. competitors Sprint Corp. and
AT&T Corp.
The combination could lead to lower wireless phone service fees,
because customers would have a nationwide network and thereby avoid
roaming or other extra charges for connecting outside their carrier's
network.
Meetings in New York between negotiators from both companies
continued Sunday, and the deal could still fall through.
Analysts have said issues of control and hard feelings over the AirTouch
battle could be stumbling blocks.
Vodafone AirTouch is still considering other options to expand its U.S.
wireless operations. Among them: acquiring another carrier such as
Omnipoint Corp. or buying licenses from other carriers such as
Nextwave Telecom Inc., which is currently under bankruptcy court
protection.
But unlike Bell Atlantic's network, Bethesda, Md.-based Omnipoint's
technology is incompatible with Vodafone AirTouch's and an alliance
with Bell Atlantic is the company's first choice, said the person close to
the talks.
A spokesman for Vodafone declined comment.
Bell Atlantic, meanwhile, is working out details in a proposed $65 billion
combination with GTE Corp. The merger is expected to be completed
later this year. |
