Global Telesystems Group (GTS) and Esprit Telecom finalized a $5-billion merger after GTS shareholders approved the acquisition of all outstanding Esprit shares. The merger capitalizes on GTS`s position as a leading alternative network operator in Europe and on Esprit Telecom`s position as one of Europe`s largest independent pan-European telecommunications service providers. Subsequently, GTS combined its new Esprit assets with its Hermes Europe Railtel (HER) operation to create the GTS Trans European Network. Prior to creating its new Trans European Network group, GTS announced the addition of Madrid, Spain, and Hamburg, Germany, to the HER network. The two cities add an additional 2500 km to the carriers` carrier network. The entire HER network is expected to total 12,200 operational km by 2000. Madrid and Hamburg are the 18th and 19th cities added to the network as primary customer access nodes.