AT&T-SBC plan is ended by phone call

Article Abstract:

Merger talks between SBC Communications and AT&T were called off when Edward Whitacre, SBC's CEO called called AT&T's Pres John R. Walter on Jun 26, 1997. Without a local phone company to merge with, AT&T is set to enter the market alone. Likewise, SBC will attempt to compete in the long-distance market by itself. The $50 billion merger would have been more than twice the size of the largest corporate merger ever. AT&T claims the breakdown in talks is due to SBC's refused to present a written plan for opening up its network to competing regional Bells. SBC claims it was prepared to open its networks to competition but AT&T detoured from necessary merger talks when the company's CEO Robert Allen stated publicly that the Bells are not meeting federal requirements by opening up their markets.

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AT&T and SBC are holding talks to merge in transaction valued at more than $50 billion; phone deal would be the biggest in history, but there are hurdles

Article Abstract:

AT&T and SBC Communications are considering a merger valued at over $50 billion, the largest of such transactions in history. Should the merger be accomplished, the new company would have almost $80 billion in yearly revenue, over 60% of the $80 billion long distance market in the US and 230,000 employees. There are several issues that will have to be overcome prior to the merger going through. One of which is the federal ban preventing SBC from becoming involved in the long distance market while it has no competitors in its local-phone market. Several topics are being negotiated, including the new company's name and management, its financial structure and base of operations. The Justice Department is expected to closely analyze this deal before giving its approval.

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