Verio Inc. The original deal was set to expire at Midnight tonight. NTT Communications extended the deadline for the acquisition by two weeks. According to NTT Communications, under the Exon-Florio Amendment to the Defense Production Act of 1950, the FTC cannot extend its review of the deal beyond August 29, 2000. NTT Communications contends that the committees national security concerns would not prevent the companies from closing the transaction with Verio. Brinksmanship Bill Whyman, Precursor Group, Inc. president, said the NTT, Verio deal never had anything to do with U.S. national security concerns.
Officials raise concerns about security and leverage the issue to secure trade deals.
Whyman's bargaining-chip analysis of the deal was confirmed Friday, when talks between the U.S. and Japan over telecom deregulation moved up one notch on the diplomatic ladder. Senior officials of the world's two largest trading partners plan to sit down and try to resolve terms that could impact the NTT, Verio deal on Monday. U.S. trade representatives are scheduled to meet with Japanese officials for a fifth day of talks to settle a dispute over NTT's interconnection rates. Washington argues the rates for local phone lines charged by Japan's former domestic phone monopoly are too high, making it difficult for U.S. carriers to compete in the world's second largest telecom market. Incorporated All Rights Reserved.