P.M. BRIEFING : 2 ‘Baby Bells’ Chosen to Buy New Zealand’s Telephone Firm

New Zealand’s government has chosen two regional U.S. “Baby Bell” telecommunications companies--Ameritech and Bell Atlantic Corp.--to purchase for $2.4 billion its state-owned telephone company, which is going private to help decrease the country’s debt.

Ameritech and Bell Atlantic said early today they will acquire the state-owned Telecom Corp. of New Zealand in a venture that will give a small stake to two New Zealand companies, Fay, Ritchwhite Holdings Ltd. and Freightways Holdings Ltd.

Telecom is being sold as part of the New Zealand government’s ongoing privatization of state-owned industries.

Ameritech is the Chicago-based parent of the Bell companies serving about 12 million customers in Illinois, Indiana, Michigan, Ohio and Wisconsin, and also provides cellular communications. Ameritech’s assets total $19.8 billion.

Philadelphia-based Bell Atlantic is the parent of several telephone companies serving about 17 million customers in Pennsylvania, New Jersey, Maryland, Virginia, the District of Columbia and West Virginia, and has assets of $26.2 billion.

Telecom Corp. of New Zealand is the main supplier of domestic and international telecommunications services, including cellular services, in the Pacific island nation.