DATE: Friday, April 25, 1997                TAG: 9704250553

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: STAFF AND WIRE REPORT 

DATELINE: WASHINGTON                        LENGTH:   48 lines

JUSTICE DEPT. OKS PHONE TAKEOVER

The Justice Department approved the merger of Bell Atlantic and Nynex on Thursday, concluding that the combination of the two Baby Bells along the Eastern seaboard does not violate antitrust laws.

It is the second-biggest merger in U.S. history. Bell Atlantic's takeover of Nynex creates a telephone colossus, controlling 38 million phone lines from Maine to Virginia.

The department announced its decision in a one-paragraph statement that said its investigation of the proposed deal had been closed ``after thorough investigation and analysis.

``The division has decided that it will not challenge the transaction, having concluded that the merger does not violate the antitrust laws,'' the agency's statement said.

In Hampton Roads, the short-term effect of the merger ``is going to be transparent to customers,'' Bell Atlantic spokesman Paul Miller said. Over a period of years, the combination of the two telecommunications giants means ``we can innovate and bring those innovations to market,'' he said.

The impact on employment in this region should also be minimal, although Northern Virginia could lose some jobs. The merger will mean the elimination of about 3,000 jobs, Miller said. One likely location for cutbacks would be Arlington. Bell Atlantic, though officially based in Philadelphia, has many headquarter-type jobs in Arlington.

The Justice Department's action comes after a yearlong investigation into whether the merger would diminish future competition in the regions served by Bell Atlantic and Nynex.

Consumer advocates had opposed the merger arguing that Bell Atlantic and Nynex would have been each other's biggest competitors if they invaded each other's local phone territories.

But blocking the merger on grounds that it would have stifled potential - as opposed to actual - competition, would have been difficult, antitrust experts had said.

The Justice Department would have needed detailed business plans or other evidence that showed the phone companies intended to compete against each other, the experts said. MEMO: Staff writer Lon Wagner contributed to this Associated Press

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