Sun Mar 5, 2006 7:42 PM GMT13
PHILADELPHIA (Reuters) - AT&T (T.N: Quote, Profile, Research) on Sunday agreed to acquire BellSouth (BLS.N: Quote, Profile, Research) for about $67 billion (38 billion pounds), to expand its reach into the southeastern United States and acquire the rest of Cingular Wireless it does not already own.
BellSouth shareholders will receive 1.325 shares of AT&T common stock for each common share of BellSouth. Based on AT&T's closing stock price on March 3, that equals $37.09 per BellSouth common share, a 17.9-percent premium.
The long-awaited deal would give the combined company a national long-distance telephone and data network, residential customers stretching from Florida to California and business customers comprising more than half of the Fortune 1000.