Verizon told to sell assets before merger

updated 6:05 p.m. ET Oct. 30, 2008

WASHINGTON - The Justice Department wants Verizon Wireless to sell assets in 22 states before merging with Alltel Corp. in a $28 billion deal to create the largest wireless carrier in the United States.

Government lawyers joined seven states in a lawsuit filed Thursday to block the merger if Verizon fails to do so.

Otherwise, the Justice Department said, the deal would hurt competition, drive up consumer prices and likely produce a lower-quality network.

“The divestitures required are necessary to protect wireless customers and are among the most extensive required by the department in a wireless case,” Assistant Attorney General Thomas O. Barnett said in a statement.

To win regulators’ approval, Verizon must sell assets in 100 areas, including the states of North Dakota and South Dakota and large portions of Colorado, Georgia, Kansas, Montana, South Carolina, Utah and Wyoming.

Verizon also must sell assets in Alabama, Arizona, California, Idaho, Illinois, Iowa, Minnesota, Nebraska, Nevada, New Mexico, North Carolina, Ohio and Virginia.

Also in msnbc.com business Answer Desk: The risks of investing extensively in gold Your Career: The repercussions of expressing your faith Interactive: 10 cars we’re looking forward to in 2010 ‘Reaching out’ and the other worst buzzwords of the year   Video: Existing home sales make an unexpected jump

MORE FROM U.S. BUSINESS

U.S. business Section Front

Madoff moved to medical wing of prison   AIG bonus return pledge goes mostly unfulfilled Top CEO departures of 2009 Medical gift cards pay for doctor, dentist visits Court orders Microsoft to stop selling Word CBS, Disney may join Apple TV venture Obama says ‘the worst is behind us’ Teachers face mass layoffs as stimulus ends States’ jobless funds going ‘absolutely broke’ Russia Web gang took millions from Citi: report U.S. business Section Front   Add U.S. business headlines to your news reader: