GTE to Sell Government Systems Unit

GTE Corp. put its 7,000-employee government systems division up for sale as part of a strategy of focusing on its high-growth telecommunications businesses. GTE Government Systems, based in Needham, Mass., is a defense telecommunications and government information service with operations in 23 states and the District of Columbia. It has contracts in more than 20 nations and annual sales of $1.4 billion, accounting for about 5% of GTE’s revenue. Irving, Texas-based GTE said the move is part of a strategy announced in April to raise $3 billion to offer customers one-stop shopping for local telephone, long-distance, Internet access, wireless, video and other services in the commercial marketplace. GTE said its intent is that the potential buyers agree to hire all of the unit’s employees in the same or comparable positions. The announcement came after the stock market closed. GTE shares closed down $4 at $64.75 on the New York Stock Exchange.