New York Approves Verizon-MCI Combination
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NEW YORK and ASHBURN, Va. - The New York State Public Service Commission today approved the pending acquisition of MCI, Inc. (NASDAQ:MCIP) by Verizon Communications (NYSE: VZ).
The decision by the New York commission follows approval of the transaction last Friday by the California Public Utilities Commission. Federal approval of the Verizon-MCI combination was awarded by both the Federal Communications Commission and the Department of Justice at the end of last month. Executives at both companies anticipate that the transaction will close, as planned, next month or in early January.
"The New York decision appropriately finds that the transaction is in the public interest," said Thomas McCarroll, Verizon vice president for regulatory affairs in New York. "We were confident that once an analysis based on the full set of facts was conducted, the commission would reach the right decision. With the high concentration of large businesses in the state, New York and New York customers stand to benefit through the creation of a strong competitor that will provide global reach, a suite of IP-based and value-added services, delivery of next-generation services, and a broader product portfolio."
Marsha Ward, MCI vice president of state regulatory affairs, said, "We appreciate the thorough and timely review by both the commissioners and staff, and the recognition that this transaction will benefit New York businesses and consumers. Today's approval brings us one step closer to completing our merger."
In New York, public hearings were held in late July across the state during which speakers expressed overwhelming support for the transaction.
The Verizon-MCI combination, part of the industry's continuing evolution driven by customers and technology, will capitalize on the complementary strengths of each company and create one of the world's leading providers of communications services.
The combined company will be better able to compete for and serve large-business and government customers by providing a full range of services, including wireless and sophisticated Internet protocol-based services. Consumers and businesses will also benefit because the new company will have the financial strength to maintain and improve MCI's extensive Internet backbone network.
Verizon Communications Inc. (NYSE: VZ), a Dow 30 company, is a leader in delivering broadband and other communication innovations to wireline and wireless customers. Verizon operates America's most reliable wireless network, serving 49.3 million customers nationwide, and one of the nation's premier wireline networks, serving home, business and wholesale customers in 28 states. Based in New York, Verizon has a diverse workforce of nearly 215,000 and generates annual revenues of more than $71 billion from four business segments: Domestic Telecom, Domestic Wireless, Information Services and International. For more information, visit www.verizon.com.
MCI, Inc. (NASDAQ: MCIP) is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With one of the most expansive global IP backbones and wholly-owned data networks, MCI develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to
NOTE: This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: a significant change in the timing of, or the imposition of any government conditions to, the closing of the transaction; actual and contingent liabilities; and the extent and timing of our ability to obtain revenue enhancements and cost savings following the transaction. Additional factors that may affect the future results of Verizon and MCI are set forth in their respective filings with the Securities and Exchange Commission, which are available at investor.verizon.com/SEC/ and www.mci.com/about/investor_relations/sec/.