Business Services Industry

SECURITY ALARM SET TO RING FOR AMERITECH

Crain's Chicago Business, December, 1997 by Cahill, Joseph B.

Court order imperils move into monitoring business JOSEPH B. CAHILL A federal Appeals Court in Washington, D.C., has entered an order raising the possibility that Ameritech Corp. will have to divest a substantial portion of its security monitoring business. The ultimate ruling is far from certain, but the final decision could derail a major diversification play for the telephone company.

Chicago-based Ameritech has spent more than $1 billion in a series of acquisitions that have made it the second-largest security company. In the buyout spree, Ameritech relied on an exemption from a provision in the telecommunications reform law barring Bells from the security business until 2001, and on a Federal Communications Commission (FCC) ruling that the law allows...

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