NEW YORK, Dec 30 (Reuters) - U.S. regulators gave the green
light to two big corporate mergers on Wednesday, but several
other large transactions are still waiting for key decisions.
Traders who specialize in mergers and acquisitions said the
approvals granted Wednesday came somewhat quicker than had been
expected, raising hopes that more swift actions would be
forthcoming in 1999.
Earlier, the Federal Trade Commission approved British
Petroleum Co. Plc.'s <BP.L> proposed $55 billion acquisition of
Amoco Corp. <AN.N>. The companies said the transaction is
expected to be finalized on Thursday.
And later in the day, the U.S. Justice Department cleared
AT&T Corp.'s <T.N> proposed $48 billion acquisition of
Tele-Communications Inc. <TCOMA.O> The deal, unveiled in June,
still requires approval from the Federal Communications
Commission.
Exxon Corp. <XON.N> proposed $79.6 billion acquisition of
Mobil Corp. <MOB.N> is the biggest deal under consideration by
regulators. Proposed earlier this month, the deal will create
the world's largest publicly-traded company.
Most merger experts are confident the deal will pass
regulatory muster, although most think it could take as long as
a year for the deal to be completed. Most experts anticipate
some regulatory issues to emerge in Europe for the two
companies, which have indicated a willingness to sell assets.
"It's going to take a long time and that's worrisome, but I
don't think it will be blocked," said one trader who did not
want to be identified.
Takeover traders also are awaiting regulatory approvals for
other deals, such as Monsanto Co. <MTC.N> proposed $1.5 billion
acquisition of seed company Delta & Pine Land Co. <DLP.N>. The
deal was first announced in May.
They also are eagerly awaiting developments in Waste
Management Inc.'s <WMI.N> proposed $1 billion purchase of
Eastern Environmental Services Inc. <EESI.O>. The Justice
Department last month filed suit to block the deal, but many
Wall Street experts anticipate the two sides to soon settle the
case and allow the deal to go forward.
REUTERS
Rtr 17:39 12-30-98
Copyright 1998, Reuters News Service
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