SAN ANTONIO, Jan. 27 (UPI) -- SBC Communications of San Antonio, Texas, rose 2 percent while A&T of New York jumped 6 percent Thursday on reports SBC is in talks to acquire AT&T.
The combination could create the nation's largest telephone company and join a flurry of industry deals as telecom companies try to build muscle to keep pace with new technologies and competitors.
SBC rose 52 cents a share to $24.06 and AT&T jumped $1.14 to $19.59 on the New York Stock Exchange following reports executives of both companies have met intermittently for the past few weeks to discuss a possible combination, which would likely cost SBC well over $15 billion, but no final decisions have been made.
Any deal to buy AT&T would probably mark the closing chapter in the history of what was for decades known simply as Ma Bell, or "the nation's phone company."
An agreement between SBC and AT&T also would likely face the ire of consumer groups, concerned that it might sharply reduce the number of choices and competitors. Because of such concerns, the deal could draw substantial regulatory scrutiny, though the companies would likely argue that they need heft to survive a future being reshaped by rapid-fire changes in technology.
The two companies have been in talks several times before, there is no guarantee that a deal will be completed. AT&T and SBC held discussions around Thanksgiving weekend last year, but they ended without any deal. This time, the companies are talking seriously about deal terms and price.
SBC's market capitalization is about $81 billion; AT&T's is about $14.8 billion.
