Originally posted by Tyrone Bigguns
AT&T Buys BellSouth for $67 Billion
Mon Mar 06, 2006 9:42 am
AT&T announced an agreement to buy BellSouth for $67 billion. AT&T currently owns 60 percent of Cingular, the No. 1 wireless carrier, while BellSouth owns the remaining 40 percent. As part of the deal, AT&T would assume full control of Cingular.
The merger will streamline the ownership and operations of Cingular Wireless. The new company will be more innovative, nimble and efficient, providing benefits to customers by combining the Cingular, BellSouth and AT&T networks into a single fully integrated wireless and wireline Internet Protocol network offering a full range of advanced solutions.
As a result, the combined company will be better able to speed the convergence of new and improved services for consumers and businesses, and embrace the industry's shift to Internet Protocol network-based technologies.
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.
AT&T expects the acquisition to save it $2 billion annually, partially from job cuts and combining the two work forces.


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