Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
SBC to acquire AT&T
Posted on 31-Jan-2005 19:48 | Tags Filed under: News



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 US$16 billion in total.

AT&T shareholders will receive 0.77942 shares of SBC common stock for each common share of AT&T. Based on SBC's closing stock price on Jan. 28, 2005, this exchange ratio equals US$18.41 per share. In addition, at the time of closing, AT&T will pay its shareholders a special dividend of US$1.30 per share.

The acquisition, which is subject to approval by AT&T's shareholders and regulatory authorities, and other customary closing conditions, is expected to close by the first half of 2006.

The transaction combines AT&T's global systems, business and government customers, and IP (Internet protocol )-based business with SBC's local exchange, broadband and wireless solutions.

In a press statement, the companies said both SBC and AT&T have highly complementary assets and capabilities. SBC has broad and transferable strengths in local service, with 52 million access lines and dense local access network capabilities to deliver voice and data services to consumers and businesses of all sizes.

SBC also works in the high-speed broadband area, with 5.1 million DSL Internet lines and a local broadband network covering 77 percent of its local customer locations. In addition, SBC has wireless coverage through its 60 percent ownership of Cingular Wireless, which has 49 million subscribers across the country.

AT&T has a global network that spans more than 50 countries and connects virtually every country and territory around the world. AT&T has 26 advanced Internet Data Centers, 13 in the United States and 13 in other countries worldwide.

In addition the transaction includes , AT&T Labs, which has more than 5,600 patents, issued or pending, worldwide.

SBC says it has taken a conservative approach modeling expected AT&T revenues. AT&T's revenues have declined over recent years as it has transitioned from a voice long distance business to an emphasis on business and data markets, and those declines are expected to continue. At the same time, AT&T's next-generation IP and e-services revenues grew 11 percent in 2004.

SBC expects the acquisition will slow its revenue growth rate in the near term following closing. New revenue opportunities include expanded wireless sales in the enterprise space and taking AT&T's industry-leading portfolio of enterprise IP-based services down market to small business and residential customers.

AT&T currently has approximately $6 billion in net debt and SBC has $26 billion, excluding debt at Cingular Wireless. SBC expects free cash flow after dividends from the combined companies to provide the flexibility to continue to reduce combined debt levels over the next five years while providing excellent cash returns to stockholders.






comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

Kiwis to be hit with tax on online purchases
Created by Gordy7, last reply by Geektastic on 19-Nov-2017 13:07 (169 replies)
Pages... 10 11 12


Spark fibre conflict with ethernet switch.
Created by sam395, last reply by Lias on 16-Nov-2017 14:49 (18 replies)
Pages... 2


Request for Windows 10 alternatives to reduce data usage
Created by D1023319, last reply by lNomNoml on 17-Nov-2017 21:19 (23 replies)
Pages... 2


Curious updates from Bigpipe
Created by robjg63, last reply by hio77 on 17-Nov-2017 19:27 (11 replies)

Data hunt (free data game) is back!
Created by PhantomNVD, last reply by PhantomNVD on 19-Nov-2017 13:51 (67 replies)
Pages... 3 4 5


Replacing HDD on a Laptop
Created by MarkH67, last reply by Batman on 19-Nov-2017 13:43 (17 replies)
Pages... 2


Has your credit card been compromised recently? Do you use one of these companies
Created by dan, last reply by robjg63 on 18-Nov-2017 18:22 (16 replies)
Pages... 2


Potential heatpump issue
Created by theitman, last reply by MadEngineer on 19-Nov-2017 15:31 (7 replies)