Europe approves AT&T-TCI merger but extends inquiry into BT deal

NEW YORK (AP) -- European Union regulators on Friday approved AT&T Corp.'s proposed merger with Tele-Communications Inc. but began a four-month probe into the telephone giant's proposed $10 billion alliance with British Telecommunications PLC.

The EU said last week the AT&T-BT venture would face more scrutiny following the conclusion Friday of an initial four-week inquiry. The two companies announced in July they will combine their international telephone operations and create a telecommunications network targeting large corporations across different countries.Both the TCI and BT deals also need approval by regulators in the United States.