DENVER (Bloomberg) -- US WEST Inc. expects to win approval from six states still reviewing its combination with Qwest Communications International Inc. by the end of June, setting the stage for the transaction to close in early July.
The pace of state action could accelerate after rivals, including AT&T Corp. and Covad Communications Group Inc., dropped opposition to the combination in US WEST's 14-state region in exchange for agreements with the company, US WEST General Counsel Mark Roellig told analysts on a conference call.State approvals "should move faster now . . . because of settlements reached with intervenors," Roellig said.
The $49 billion transaction will give Qwest, the No. 4 U.S. long-distance company, access to US WEST's 25 million customers and a 14-state local phone network and let US WEST cut its costs to complete long-distance phone calls.
Roellig said an agreement in Minnesota, where the company assured regulators it will spend $160 million over four years and pay as much as $170 million in penalties for poor service, eliminated some issues raised by AT&T and other companies, prompting the settlements.
The company expects regulators in Montana, Utah and Wyoming to act in May and Arizona, Washington and Minnesota to decide in June. The Federal Communications Commission will complete a two-step review by approving Qwest's $200 million transfer of long-distance assets to Montana Power Co. by June 26. The FCC last month approved the combination, pending sale of the assets to avoid conflicts with the ban on local companies, such as US WEST, from carrying long-distance calls within their regions.
After winning all state and FCC approvals, Roellig said the companies would take about five days to close their books, though a final merger closing date would be up to Qwest.