Connecticut Tries to Block Phone Merger

The state of Connecticut moved to block the proposed acquisition of Connecticut-based Southern New England Telecommunications Corp. by San Antonio-based SBC Communications Inc. State Attorney General Richard Blumenthal said he had filed a motion with state utility regulators to prevent the merger “due to the companies’ repeated failure to provide information on whether and how rates will be reduced.” The companies said they regretted the state’s move but were confident the state’s regulators eventually would approve the merger. Blumenthal said that expected cost savings to consumers from the $4.38-billion merger is a critical issue for regulators to assess. On May 7, Blumenthal suggested that savings realized by the merger should result in a reduction in basic rates of $110 million, or $4 per month. Both companies responded that there was “no legal basis” for a cut.