Bell Atlantic Corp. and Nynex Corp. are exploring a possible merger to create a new company that would trail only AT&T in the U.S. telecommunications market, The Wall Street Journal reported Monday.
Neither Bell Atlantic nor Nynex has yet made a final decision to pursue a merger, sources close to the discussions told the Journal.The talks between the two companies - each created by the landmark breakup of the AT&T empire in 1984 - were spurred by pending federal legislation that would allow the seven so-called Baby Bells to enter the long-distance business.
But the likelihood of a merger declines if Congress' effort to deregulate the telecommunications market falters, said the sources, who requested anonymity.
The merger talks have been buoyed by the combination of Bell Atlantic and Nynex's cellular businesses, completed earlier this year.
"I don't think these rumors are worthy of speculation at this time," Tom Tauke, a Nynex lobbyist and former congressman, said Monday in an interview on CNBC. But he said the report was an indication of the strategic alliances being considered throughout the telephone, cellular and cable industries under deregulation. Calls seeking comment from Nynex spokesmen were not immediately returned.