Bell company merger meets objector

The New York attorney general is trying to scuttle a proposed merger between Bell Atlantic and Nynex because he believes it would adversely affect competition in the state.

Central to Attorney General Dennis Vacco's argument, contained in a brief filed with the New York Public Service Commission last week, is the fact that the merger would eliminate Bell Atlantic as a likely suitor in New York markets.

That is significant because Bell Atlantic is "the only other company likely to come in here," said Steve Houck, chief of the antitrust division of the attorney general's office.

A Bell Atlantic spokesman pointed out that at least 20 companies offer service in New York and that the evidence does not support the attorney general's reasoning. In a statement, Nynex Chairman and Chief Executive Officer Ivan Seidenberg called the attorney general's argument "about as weak a straw that could have been grasped." The merger still requires the approval of the New York PSC and the U.S. Department of Justice.

In other merger developments, the Federal Communications Commission gave its nod to a proposed merger between SBC Communications and Pacific Telesis last week by approving the transfer-of-control of several wireless licenses.