JUSTICE OPPOSES QUICK GREYHOUND-TRAILWAYS MERGER
  The Justice Department said it asked
  the government to proceed cautiously on a plan allowing the
  nation's two largest intercity bus companies to merge their
  operations, a move one of the firms said may derail the deal.
      Justice's opposition to quick federal approval of a bid by
  Greyhound Lines Inc to take immediate control Trailways Corp
  prompted Greyhound to threaten -- in a brief filed with the
  Interstate Commerce Commission (ICC) -- to drop the merger
  plan.
      Greyhound officials told Reuters late today the company
  hoped for ICC action on the merger by tomorrow.
      "Greyhound Lines will go forward with the transaction only
  if it is permitted to assume immediate, unconditional control
  of Trailways' operations and to integrate them with its
  operations," Greyhound said in a filing with the ICC, the
  federal regulatory agency which has the final say over mergers
  of interstate bus companies.
      But Justice had said in an earlier filing with the ICC that
  it wanted the agency to move slowly on the plan and to turn
  down Greyhound's request to begin operating Trailways
  immediately.
      "The department has just begun to receive relevant
  information on Trailways' financial condition and is in the
  process of assessing the correctness of the company's
  allegations," acting Assistant Attorney General Charles Rule
  said in comments submitted to the ICC.
      Greyhound announced June 19 that it wanted the ICC to let
  it begin operating Trailways immediately while continuing to
  evaluate the merger for possible antitrust problems.
      Greyhound said it would pay 80 mln dlrs for many of
  Trailways' terminals, buses and garages.
      The two companies said in papers filed with the ICC that
  Trailways "could collapse in a matter of days."
      They said Trailways owed suppliers more than six mln dlrs,
  with another six mln dlrs due June 30.
      The suppliers, they said, could force Trailways into
  bankruptcy "at any time."
      Trailways also owes a consortium of banks 76 mln dlrs, and
  the consortium has threatened to call the loan if Trailways
  fails to pay the interest due June 30, they said.
  

