SBC Expects Regulators to OK Ameritech Deal

SBC Communications Inc. said it expects federal regulators to approve its $78-billion acquisition of Chicago-based Ameritech Corp. by the middle of next year. The Federal Communications Commission is closely examining the proposed purchase because regulators are concerned it won’t promote competition in the U.S. local telephone market. Rivals such as AT&T; Corp. and consumer groups are pushing the FCC to reject the transaction, as well as Bell Atlantic Corp.’s planned $81-billion purchase of GTE Corp., because they may hurt consumers by stifling competition. The Wall Street Journal raised the prospect that the FCC could block one or both of the deals. The Justice Department also is reviewing the proposed mergers. “The company still projects to close the merger by the middle of 1999,” said Stephen Carter, SBC’s president of strategic markets. “I have not encountered any antagonistic attitude” in meetings with FCC officials this week, he said. San Antonio-based SBC said it needs Ameritech to make it globally competitive. On the NYSE, SBC shares fell 50 cents to close at $49 and Ameritech shares rose 50 cents to close at $56.75.