Treasury panel finds no security risk in proposed NTT-Verio deal

[InfoSec News <isn () C4I ORG>]

http://www.techserver.com/noframes/story/0,2294,500239793-500352577-502048052-0,00.html

TOKYO (August 15, 2000 12:58 p.m. EDT http://www.nandotimes.com) - A
Treasury Department panel has found that NTT Communications Corp.'s
$5.5 billion purchase of Verio Inc., an Internet service provider,
poses no security risk, NTT said Tuesday.

U.S. government agencies have expressed concern that foreign ownership
of a U.S. communications company could interfere with the government's
ability to monitor criminals and terrorists.

The U.S. Committee on Foreign Investment in the United States, a
Treasury Department panel that reviews acquisitions of American
companies by foreign entities, has been investigating the proposed
purchase of the Englewood, Colo.-based company.

But the committee told NTT on Tuesday it found that NTT ownership of
Verio would pose no security risk and that it has advised President
Clinton to clear the purchase, NTT Communications spokesman Fuyuki
Natsuneda said.

In a related move, NTT Communications, a subsidiary of Japanese
telecommunications giant Nippon Telegraph and Telephone Corp., said it
extended to Monday from Aug. 14 a tender offer for all shares in
Verio.

By law, the president must make a decision by Aug. 29, NTT said. If
Clinton reaches no decision by Monday, NTT may extend the tender offer
another week, Natsuneda said.

Shares of Verio were trading up 28.1 cents to $59.531 on the Nasdaq
Stock Market. U.S. shares of NTT Corp. were down $1.687 to $57.688 on
the New York Stock Exchange.

ISN is hosted by SecurityFocus.com
---
To unsubscribe email LISTSERV () SecurityFocus com with a message body of
"SIGNOFF ISN".