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16 August 2000
Note: Verio, Cryptome's ISP through its subsidiary Digital Nation, has not answered a Cryptome request for a public statement on its privacy protection policy in the light of revelations about NTT/Verio cooperation with USG surveillance.
By Reuters
NTT Communications of Japan appears ready to complete a $5.5 billion purchase of an Internet service provider, Verio Inc., as soon as next week after American officials determined that the deal would not threaten national security.
NTT Communications, a unit of Nippon Telegraph and Telephone, extended its offer, of $60 a share, until next Monday, saying it had agreed to formal measures aimed at protecting Verio's classified and customer information. The offer had been scheduled to expire two days ago.
The deal, in the works for three months, drew political attention because of fears that it could present a foreign espionage risk by giving N.T.T., in which the Japanese government maintains a controlling stake, access to United States wiretapping activities. Verio, of Englewood, Colo., operates Web sites for and provides Internet services to small and mid-size businesses.
But the Committee of Foreign Investments in the United States, a Treasury Department panel that reviews foreign acquisitions of companies, recommended on Monday that President Clinton take no action to block the deal. Representatives of N.T.T. and Verio had recently met with the committee to address the concerns. Mr. Clinton is required to act on the recommendation by Aug. 29.
NTT Communications said it would supplement Verio's operation policies and manuals with information on handling requests by law enforcement agencies, including security procedures to protect classified information.