SBC Communications Inc. to acquire ATT

SBC Communications Inc. and AT&T announced an agreement for SBC to acquire AT&T. Under terms of the agreement, approved by the boards of directors of both companies, shareholders of AT&T will receive total consideration currently valued at $19.71 per share, or approximately $16 billion. In addition, at the time of closing, AT&T will pay its shareholders a special dividend of $1.30 per share. The stock consideration in the transaction is expected to be tax-free to AT&T shareholders. The transaction is expected to close by the first half of 2006. It combines AT&T's global systems capabilities, business and government customers, and fast-growing Internet protocol (IP)-based business with SBC's local exchange, broadband and wireless solutions.

In light of this agreement AT&T will have to review previously announced information that it will offer wireless service to business customers by using Sprint's network which now appears uncertain.

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SBC Communications Inc.