The proposed $23 billion merger between Nynex and Bell Atlantic has overcome one hurdle on its way to full approval, providing it meets certain conditions.
The New York State Public Service Commission (PSC) has given the go-ahead to the merger but has imposed what Nynex president, Don Reed, claims are ?rigorous conditions?.
The PSC wants the merged company?s headquarters to be located in New York State rather than Philadelphia, where Bell Atlantic is currently based. It also wants Nynex to speed up its $1 billion five-year Service Improvement Plan which, according to Reed, ?would require us to complete the first half of this plan?s capital and expense investments in the next two years?.
The PSC also wants Nynex to put an additional 750 to 1,000 people into service-oriented positions. However, the commission did not stipulate rate reductions although it does want to review its options three years after the merger.
Said Reed: ?From the beginning we have maintained that such requirements were unwarranted. But other commissions in Nynex states have granted conditional approvals as well. We need to be certain we fully understand the New York commission?s requirements, and we need to be sure that accepting this proposal is the most appropriate option for the new Bell Atlantic.?
The merger has yet to be cleared by the US Department of Justice and the Federal Communications Commission.
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