FBI involves itself in Verio merger

[cult hero <jericho () ATTRITION ORG>]

---------- Forwarded message ----------
From: "Perry E. Metzger" <perry () piermont com>
To: cryptography () c2 net

------- Start of forwarded message -------
From: Dave Farber <farber () cis upenn edu>
Subject: IP: Important Security Update?

Date: Thu, 6 Jul 2000 13:36:32 -0400
To: farber () cis upenn edu
From: Charles Brownstein <cbrownst () cnri reston va us>

from http://www.internetnews.com/isp-news/article/0,2171,8_409201,00.html

InternetNews - ISP News

July 6, 2000 InternetNews - ISP News Archives


FBI to Scrutinize NTT-Verio By the InternetNews.com Staff

Tokyo-based Verio Inc. is being scrutinized by the Federal Bureau of
Investigation.

According to the Wall Street Journal, the FBI Thursday raised national
security concerns about the Japanese company's attempt to acquire the U.S.
Internet service provider.

The FBI registered concerns with the Treasury Department about NTT's
(NYSE:NTT) planned purchase of Verio (NASDAQ:VRIO) because agency is
concerned that foreign ownership of Verio would inhibit its ability to
maintain surveillance over its telecommunications network.

NTT posted a $5.5 billion offer for Verio in May to acquire the final 90
percent of Verio it did not already own. Verio provides Web hosting and
network services for about 20 percent of the Fortune 500 companies in the
world.

The FBI contents that in order to protect U.S. facilities, it must be
assured that only U.S.-owned companies can be used to handle domestic
Internet traffic. In the past, the FBI has also insisted that the
companies employ U.S. citizens to handle potential wiretapping activities.

NTT announced Friday that the Treasury Department's Committee on Foreign
Investment in the U.S. would conduct a 45-day review of the planned merger.

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