SBC and AT&T approve $16bn merger

SBC Communications and AT&T
on Monday said they had approved a $16bn merger that will create the
largest telecommunications company in the US and end AT&T’s
120-history as an independent company.

//

Under
the terms of the deal approved by both boards, shareholders at AT&T
will receive stock worth $18.41 a share and a special dividend of $1.30
a share. This means SBC is paying AT&T shareholders a combination
of just under $15bn in stock and just over $1bn in cash.

David
Dorman, AT&T’s chief executive, will become president of the
combined group, and join its board along with two other AT&T
executives. Edward Whitacre will remain as chairman and chief executive
of the new company.
[via FT.com]

So the roumours and speculation has proved correct and the merger has gone through. Now we’ll have to see how this affects EMEA as this new huge American company develops its strategy.

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