Sunday, January 30, 2005
SBC, AT&T Board Meet on Merger: Source
Courtesy of
NEW YORK- The boards of directors of SBC Communications Inc. and AT&T Corp. met on Sunday afternoon to vote on a more than $15 billion stock deal in which SBC will acquire AT&T, according to a source familiar with the situation.
The companies, which have been in talks for days, have come to a tentative agreement, the source said. The combination would bolster SBC's business with large corporations and spell the end for AT&T, the once ubiquitous "Ma Bell."
If the boards approve the deal, it could be announced as early as Monday, the source said.
According to the Wall Street Journal, which cited people close to the companies, the deal would include $15 billion in SBC shares as well as an additional $1 billion special dividend to be paid to AT&T shareholders
Phil's Observations:
You know, I am a little bewildered by this move. I'm not sure I see the benefit of it. In 1984, Ma Bell breaks up. SBC, Ameritech, GTE, and others are now independent companies. In the '90s, they all start merging and aquiring each other. SBC buys Ameritech and others, and Verizon buys GTE and others. Now, SBC wants its big daddy, AT&T back into the family. I'm not so sure about this move.
As a side note, I'm not so sure about the P&G and Gillette move either. That, too, would create a mammath company.
NEW YORK- The boards of directors of SBC Communications Inc. and AT&T Corp. met on Sunday afternoon to vote on a more than $15 billion stock deal in which SBC will acquire AT&T, according to a source familiar with the situation.
The companies, which have been in talks for days, have come to a tentative agreement, the source said. The combination would bolster SBC's business with large corporations and spell the end for AT&T, the once ubiquitous "Ma Bell."
If the boards approve the deal, it could be announced as early as Monday, the source said.
According to the Wall Street Journal, which cited people close to the companies, the deal would include $15 billion in SBC shares as well as an additional $1 billion special dividend to be paid to AT&T shareholders
Phil's Observations:
You know, I am a little bewildered by this move. I'm not sure I see the benefit of it. In 1984, Ma Bell breaks up. SBC, Ameritech, GTE, and others are now independent companies. In the '90s, they all start merging and aquiring each other. SBC buys Ameritech and others, and Verizon buys GTE and others. Now, SBC wants its big daddy, AT&T back into the family. I'm not so sure about this move.
As a side note, I'm not so sure about the P&G and Gillette move either. That, too, would create a mammath company.
Kicknit 1/30/2005