FCC Approves Qwest’s Deal for US West

The Federal Communications Commission approved Qwest Communications International Inc.’s planned acquisition of Baby Bell US West Inc., subject to a planned divestiture of some long-distance customers. The merger, which had been under pressure from a now-abandoned bid by German carrier Deutsche Telekom, has already been approved by shareholders and the Justice Department, but several states in Denver-based US West’s 14-state region continue to review the deal. Colorado and Washington regulators have OKd the deal. Six other state approvals are pending. Qwest, also based in Denver, previously agreed to shed its long-distance customers within US West’s region to comply with limits placed on the regional Bells by the 1996 Telecommunications Act. Qwest shares dropped $7.75 to close at $52.25, and US West fell $6.13 to close at $70.38, both on the New York Stock Exchange.