BUSINESS NOTES.

REGULATORS OK PHONE MERGER: Federal regulators approved the merger of Bell Atlantic and Nynex, creating a local telephone colossus with 39 million phone lines from Maine to Virginia.

Approval by the Federal Communications Commission had been a foregone conclusion since the two Regional Bell companies pledged July 19 to make it easier for rivals to compete in local phone markets.

The merger, valued at $23 billion when it was announced in April 1996, would create the second-biggest phone company behind AT&T Corp. The new company, to be called Bell Atlantic, will serve 13 states and the District of Columbia.

?13Associated Press

BEN & JERRY'S WANTS NO BGH: Ben & Jerry's soon will declare on the labels of ice cream products such as Cherry Garcia its opposition to using artificial hormones in dairy cows.

The government says the hormone known as BGH is safe, but Ben & Jerry's labels will announce that farmers supplying milk to the company have agreed not to use the genetically engineered substance to increase milk output.

Ben & Jerry's Homemade Inc. and three other organic food companies announced Thursday settlement of a 1996 lawsuit against Illinois and compromise on language in the statement. Ben & Jerry's had wanted to label its products ``BGH free.'' Public health officials in Illinois objected that such language could imply that milk from BGH-treated cows is somehow tainted.

?13Associated Press

CONSUMER PRICES STABLE: Consumer prices remained under control in July as the economy continued moderate expansion.

``The data continue to paint a picture of an economy that is performing exceptionally well,'' economist Chris Varvares of Macroeconomic Advisers in St. Louis said. ``Inflation is still very tame, with no sign of acceleration.''

The Labor Department reported Thursday its Consumer Price Index rose a modest 0.2 percent in July, slightly more than the 0.1 percent recorded during the previous four months and the biggest advance since a 0.3 percent gain in February.

?13Associated Press

GKN SLAPPED FOR OVER-BILLING: Wall Street brokerage GKN Securities Corp. agreed to repay some $1.4 million to investors who were allegedly overcharged, securities regulators said.

GKN also will pay a $250,000 fine, said NASD Regulation, a self-regulatory body for securities dealers. In addition, 29 of the firm's brokers and supervisors, including its chief executive officer and its president, were fined a total of $475,000.

By agreeing to the settlement Thursday, GKN neither admitted nor denied the allegations that it charged excessive markups - sometimes as much as 67 percent - to investors over the prevailing market price for eight small-company securities. Markups of more than 10 percent are considered fraudulent.

?13Associated Press

COLUMBIA/HCA OFFICIALS SUED: Columbia/HCA Healthcare Corp.'s senior officials were sued by the New York State comptroller, who accused them of depressing the company's stock by exposing the company to a possible criminal indictment.

Comptroller Carl McCall filed the suit against 11 current and former Columbia officers and directors Thursday in federal court in Tennessee.