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BELLSOUTH ISSUES STATEMENT REGARDING JUSTICE DEPARTMENT COMMENTS

 WASHINGTON, Jan. 6 /PRNewswire/ -- BellSouth (NYSE: BLS) issued the following today:
 Background: In response to a BellSouth petition, the Justice Department late Wednesday afternoon told the U.S. District Court in Washington that a modification of the MFJ should be required before AT&T (NYSE: T) is allowed to acquire McCaw's interest in cellular companies that have Bell companies as majority owners. (The decree said that AT&T cannot acquire the assets of a BOC.)
 Because there is no motion for an AT&T-McCaw modification pending, DOJ disagreed with BellSouth on whether an AT&T-McCaw modification request should be considered only in conjunction with a pending Bell company request for waivers of the long-distance restriction as it applies to wireless.
 According to Walter Alford, executive vice president and general counsel of BellSouth Corp.: "It is quite significant that the Justice Department believes that AT&T needs a modification of the divestiture consent decree before acquiring the assets of certain Bell-McCaw partnerships.
 "If the court rules that a modification is necessary and AT&T requests such a modification, BellSouth will have an opportunity to support the AT&T-McCaw merger by arguing that the competitive marketplace has changed dramatically in the 12 years since the consent decree was agreed to and thus basic elements of the decree are no longer valid.
 "Also significantly, Justice agreed with BellSouth that 'AT&T's proposed acquisition of McCaw, and its impact on competition in wireless markets, may be relevant to' the Bell companies' waiver request which seeks to modify the long-distance restriction in the wireless market. Indeed it is."
 -0- 1/6/94
 /CONTACT: Bill McCloskey or John Schneidawind of BellSouth, 202-463-4100/
 (BLS T MCAWA)


CO: BellSouth Corporation; American Telephone & Telegraph Company;
 McCaw Cellular Corp.; U.S. Department of Justice ST: District of Columbia IN: TLS SU:


BR-BN -- AT007 -- 9693 01/06/94 10:46 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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