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DT-VoiceStream deal OK'd
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May 1, 2001: 9:44 a.m. ET
Regulators, unconcerned about German ownership, approve $26B takeover
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NEW YORK (CNNfn) - U.S. regulators have given final approval to the $26 billion acquisition of VoiceStream Wireless Corp. by Deutsche Telekom AG, the companies said Tuesday.
The Committee on Foreign Investment in the United States was the final regulatory agency reviewing the takeover by German telecommunications firm Deutsche Telekom of U.S. mobile-phone company VoiceStream (VSTR: down $0.04 to $104.96, Research, Estimates) and decided not to block the deal even though the German government has a 58-percent stake in Deutsche Telekom, which will fall to about 45 percent once the merger is completed.
The Committee also approved Bellevue, Wash.-based VoiceStream's $2.2 billion purchase of Powertel Inc. (PTEL: up $0.06 to $64.40, Research, Estimates).
Last week, the Federal Communications Commission ruled the Communications Act does not prohibit a foreign government from having more than 25 percent indirect ownership of radio licensees and approved the merger without conditions.
In January, the companies promised the Federal Bureau of Investigation and Justice Department that they would not hinder the agencies' ability to conduct legally authorized wiretaps of domestic calls. 
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