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To: orson sanderson who wrote (2018)	3/24/1999 9:08:00 AM
From: Roy F	Read Replies (1) \| Respond to of 3299

OT: FOCUS-US Justice Dept. okays SBC, Ameritech deal March 23, 1999 07:41 PM (adds company comments, para. 5-6) WASHINGTON, March 23 (Reuters) - The U.S. Department of Justice on Tuesday cleared SBC Communications Inc.'s SBC $61 billion acquisition of Ameritech Corp. AIT , but the deal still needs the approval of several states and the Federal Communications Commission. The Justice Department determined that regional phone giant SBC, which provides local service in eight western and southwestern states, would not harm telecommunications competition by buying Ameritech, which serves five midwestern states. As expected, the companies will be required to shed one cellular telephone license in each of 17 cities, including Chicago and St. Louis, where both had licenses before the merger. Federal rules prohibit the companies from owning two licenses in the same market. The overlapping licenses must be sold within 180 days of the close of the merger. "We said from the start that we would sell one of the properties in each of the overlapping markets and we have been making progress towards that goal," Ameritech general counsel Kelly Welsh said. Welsh said the Justice Department's findings should aid the FCC and regulators in Ohio and Illinois, "to move on with their evaluations and to review (the merger) favorably and expeditiously." San Antonio-based SBC and Chicago-based Ameritech said they hoped to close the deal, announced in May 1998, by mid-year. The combined company would have revenues of more than $40 billion offering service in 13 states ranging from California to Illinois. The FCC has a much broader standard for evaluating the deal, however. The agency is deciding whether the deal furthers the "public interest," such as by providing consumers with better or cheaper service. FCC chairman William Kennard said March 12 he expected his agency to complete its review by mid-year. An FCC spokeswoman on Tuesday said the agency's review "continues." Ameritech and SBC say the merger will give them the size and scope to expand into the regions of the other Bell companies, providing substantial local competition to markets that have seen little so far. They have pledged to offer service in the 30 largest cities outside of their territories if the merger is approved. But other carriers including the major long distance companies have urged regulators to reject the deal, which they argued would reduce incentives for the Bells to allow local competition. On the New York Stock Exchange on Tuesday, Ameritech shares closed down $3.0625 at $61.0625 and SBC shares lost $1.875 to close at $48.5625. ((Aaron Pressman, Washington newsroom, 202-898-8312)) REUTERS