Sprint/WorldCom merger questioned at Justice Department

However, high-level negotiations between top Justice Department officials and company leaders in the next few weeks could swing the balance in favour of approval, company officials said.

Sources close to the merger and regulatory review of the deal confirmed published reports that said staff of the Justice Department's antitrust team intend to recommend against approval of the merger.

However, an MCI WorldCom spokesman said the important part of the approval process lies ahead as top executives meet to hash out an approval plan.

"We look forward to the opportunity to present the facts and our views to senior Justice Department officials in the next few weeks," Peter Lucht, an MCI WorldCom spokesman, said in a phone interview. "We still expect the deal will close during the second half of the year."

The Justice Department declined to give details of the approval process. "The matter is still pending," said Jennifer Rose, a Justice Department spokeswoman.

While the Justice Department staff opposes the merger, it is up to Joel Klein, chief of the antitrust division, to make a final decision, sources close to the companies noted.

Opinion varies over the final action the Justice Department will take about the proposed merger of the long-distance telephone giants.

"It could go either way," said Steve Koppman, an analyst with Dataquest. "Our [official] position is it will be approved with heavy conditions, although I think there is a significant chance it will be rejected."

The issues that must be examined if the companies were joined include pricing policies, local broadband access and whether or not the companies would be allowed to keep their Internet backbone units, Koppman said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jack McCarthy

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?