AT&T to Acquire BellSouth
AT&T is going to acquire BellSouth for US $67 billion, in an all-stock deal. Under the agreement, AT&T will hold full ownership of Cingular Wireless LLC.
AT&T is going to acquire BellSouth for US $67 billion, in an all-stock deal. Under the agreement, AT&T will hold full ownership of Cingular Wireless LLC.
Edward E. Whitacre Jr, Chairman and CEO of AT&T, said: “This merger is a logical next step that creates substantial value for customers and stockholders of both AT&T and BellSouth.
t will benefit customers through new services and expanded service capabilities. It will strengthen Cingular through unified ownership and a single brand. And we are confident that this is a merger we can execute, based on our track record with previous integrations and our experience working closely with BellSouth to create and build Cingular Wireless, and operate Yellowpages.com.” [Source]
Under the agreement, BellSouth’s shareholder will receive 1.325 shares of AT&T’s common stock for each common share.
The merger will combine Cingular,BellSouth and AT&T into a single wireless and wireline Internet Protocol network.
AT&T and BellSouth estimate that synergies from the merger will reach an annual run rate over $2 billion in the second year after the closing of the deal.
The deal is yet to be approved by shareholders and regulators. The merger is expected to be complete within a year.
Comments are closed.
