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Bell Atlantic, GTE in talks?
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July 27, 1998: 6:05 a.m. ET
Reports say telecom companies discussing possible $55B merger
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NEW YORK (CNNfn) - Bell Atlantic Corp. and GTE Corp. are believed to be talking about a possible merger that could be valued between $52.5 billion and $55 billion.
The companies are working toward a possible announcement this week, according to published reports Monday. Officials from both companies declined comment in the reports.
A Bell Atlantic-GTE merger would create a telecommunications company with $53 billion in revenue and 62 million local telephone lines. It would also give Bell Atlantic a means to enter long-distance markets.
Also, GTE's presence in both local and long-distance services, coupled with Bell Atlantic's dominance providing local service in the Northeast region, would create a company that boasts one-third of the nation's telephone lines with systems in 40 states.
A deal would also be the latest in a series of telecommunications megamergers. A Bell Atlantic-GTE union would rival the pending merger of SBC Communications Inc. and Ameritech Corp.
On Sunday, AT&T Corp. and British Telecommunications Plc announced plans to launch a $10 billion joint venture that will be run by executives from both companies.
A Bell Atlantic-GTE deal would face tough scrutiny from federal regulators. Bell Atlantic is currently barred from offering long-distance service in its local-service territory. The government may also look closely at the two companies' cellular assets.
Bell Atlantic (BEL) shares closed at 45-3/16 in Friday trading, up 1-3/16. Shares of GTE (GTE) finished up 1-1/2 at 57-15/16. 
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Bell Atlantic
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