GTE: We’d open local
markets to get MCI

To win regulators' approval,
GTE would 'consider anything
they suggest'

Bloomberg News

WASHINGTON -- GTE Corp. would consider making it easier for competitors to gain a foothold in the company's local phone markets if necessary to win federal approval of its $33.51 billion bid for MCI Communications Corp., GTE's general counsel said.

Bill Barr, GTE's top lawyer and a former U.S. attorney general, said he was confident the acquisition plan would gain the required approval from the Justice Department and Federal Communications Commission.

Still, he told the Bloomberg News that GTE might further open its markets to competition if that's what government officials demand.

The company would "certainly consider anything they suggest," Barr said. "We think our markets are open, but if they have specific concerns, we're obvious willing to talk about that."

GTE, parent of Hawaiian Tel, has been heavily criticized for throwing up obstacles and dragging its feet in opening Hawaii's local phone service to competitors, including AT&T Corp., Sprint Corp. and GST Telecommunications Inc.

Barr said he expected the Justice Department will need until the second quarter of 1998 to make any decision on GTE's bid for MCI or on WorldCom Inc.'s competing offer. GTE is offering $28.32 billion in cash, or $40 a share, while WorldCom is bidding $41.50 a share, or $29.38 billion, in stock. Both would assume $5.19 billion in debt.

The Justice Department and the FCC each must sign off on any acquisition involving MCI. The Justice Department looks for antitrust problems. The FCC then considers whether the combination is in the public interest.