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U.S. ups MCI-Sprint probe
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December 14, 1999: 2:14 p.m. ET
Justice Department taps antitrust lawyer Stephen Axinn to review $129B merger
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NEW YORK (CNNfn) - The U.S. Justice Department confirmed Tuesday that it selected antitrust lawyer Stephen Axinn to help review MCI WorldCom Inc.’s planned $129 billion buyout of rival long-distance provider Sprint Corp.
The hiring of 60-year-old Axinn, former head of the antitrust practice at the New York firm of Skadden, Arps, Slate, Meagher & Flom, may be a reflection of the importance of the deal, which would be the largest merger in U.S. history.
The department declined, however, to say where it stands on the merger, nor did it offer a timetable for the review.
Sprint and MCI had no immediate comment.
Axinn, who is currently a partner in the firm of Axinn, Veltrop & Harkrider in New York, will serve as an outside advisor.
The Justice Department is no stranger to hiring outside experts to advise on antitrust issues. Most notably, antitrust chief Joel Klein called on attorney David Boies to make the government’s case in its antitrust suit against Microsoft Corp.
Boies began to work for the Justice Department as an outside advisor, but later joined the staff to argue the case against the software company.
One antitrust lawyer said it is somewhat unusual for the Justice Department to reach outside for antitrust assistance in a case that has not yet drawn legal action.
"There has been more precedent to bring in litigators than to bring in counsel to investigate a merger,” said Tyler Baker, attorney with the Dallas-based law firm of Carrington, Coleman, Sloman & Blumenthal and a Justice Department official during the Reagan Administration. "But it’s not a bad idea.”
"Joel Klein is not shy about going out and getting additional resources,” added Baker.
The deal also faces a review by the Federal Communications Commission. The Washington Post reported last week that an FCC research director called the deal an "intolerable” blow to competition.
In an interview with CNNfn on Monday, FCC Chairman William Kennard said that maintaining competition in the long-distance market is a priority. He said the FCC is still studying the record and has not made its final decision.
"When this merger was announced, I did state publicly that we were going to take a very hard look at it,” he said. "I had some concerns whether we would be going in the wrong direction in terms of bringing competition to the consumer long-distance market.”
At around 1 p.m. ET, Tuesday, shares of the Clinton, Miss.-based MCI WorldCom (WCOM) were down 1-7/16 to 77-3/4, while Sprint (FON), of Westwood, Kan., shed 2 to 66. 
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