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DT makes pitch to FCC
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September 18, 2000: 6:10 p.m. ET
Despite legislative protests, DT presses ahead with $30.9B VoiceStream merger
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NEW YORK (CNNfn) - Ignoring legislative efforts to scuttle their planned union, Deutsche Telekom and VoiceStream Wireless Corp. filed a joint application with the U.S. Federal Communications Commission Monday seeking critical approval to transfer numerous wireless licenses into Deutsche Telekom's control.
The filing comes amid a storm of protests by several top lawmakers on Capitol Hill, who have filed legislation that would effectively halt the $30.9 billion acquisition in its tracks. The merger agreement, signed in July, aims to create a powerful international wireless concern and give the German-based Deutsche Telekom a significant foothold on U.S. soil.
However, several federal lawmakers, led by Sen. Ernest Hollings, D-S.C., are proposing legislation that would prohibit the FCC from allowing an overseas company more than 25 percent owned by a state government from obtaining the wireless licenses owned by an American firm. The German government currently owns about a 57 percent stake in Deutsche Telekom (DT: Research, Estimates).
 Both sides made their cases to a legislative committee in Washington earlier this month, with the FCC joining VoiceStream's chorus to allow current federal law to dictate the review process. But the committee has yet to rule on the proposal.
As with all merger applications made with the FCC, the federal agency will have 180 days to review the proposal before making a decision.
The uncertainty has clearly made investors nervous. VoiceStream (VSTR: Research, Estimates) shares fell $4.31 to $110.44 Monday and are now nearly 25 percent below their closing price the day before the merger was announced. Deutsche Telekom shares have likewise been hit hard, falling $1.37 to $35.63, a level nearly 31 percent below their closing price prior to the deal. 
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