AT&T buys BellSouth for $ 67 billion

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The purchase of the capital of Cingular Wireless that it does not yet own and the extension of its capital in cable and Internet in the southeastern area of ​​the United States are two of the reasons presented by AT&T for the purchase of BellSouth Corp. The deal was announced today and is valued at $ 67 billion, approximately € 55.5 billion, guaranteeing BellSouth’s shareholders a premium of 17.9 percent above the value of the company’s current shares.

With the acquisition, AT&T will add access to residential and business customers in more than 22 states, providing long distance telephone and Internet services. The combined value of the two companies will be around $ 165 billion.

Upon completion of the deal, AT&T will own Cingular Wireless, the largest mobile operator in the United States. The company already owned 60 percent of the operator, but BellSouth held 40 percent of the capital.

The acquisition is expected to be completed by the end of the year, bringing together all brands and businesses under the unique name of AT&T.

It is recalled that the new AT&T was formed last year when SBC Communications completed the purchase of AT&T Corp. After the spin-off of the large Ma Bell into seven separate units in 1984, three of the regional Baby Bells operators have already been reacquired, with BellSouth being the fourth reinstatement.

Related News:2005-01-31 – SBC acquires AT&T expanding its scope of action at national level