SAN ANTONIO, Jan. 31 (UPI) -- The boards of SBC Communications Inc. and AT&T Corp. approved a deal early Monday in which SBC will acquire AT&T for roughly $16 billion, mainly in stock.
The deal aims to create the nation's largest communications company, the Wall Street Journal said.
Under terms of the agreement, shareholders of AT&T will receive total consideration currently valued at $19.71 a share, or about $16 billion. The acquisition is subject to approval by AT&T's shareholders and regulatory authorities, and is expected to close by the first half of 2006.
SBC Chairman and Chief Executive Edward Whitacre Jr. will remain in his current positions while AT&T Chief Executive David Dorman will become president. AT&T gets three seats on the new company's board, including one for Dorman
The new company will be based in San Antonio at SBC's headquarters, although Whitacre said the AT&T brand name will remain part of the company's future.
