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Posted on 03.07.06 by Nikhil @ 3:51 pm
AT&T says it will buy Bell South for $67 billion in stock. The company will pay 1.325 of its own shares for each BellSouth share. The result will be one huge company that offers long distance wired service, wireless service and data service. AT&T’s offer price is about 18% higher than the stock was trading - so shares of BellSouth moved up signficantly yesterday. The news is significant for a couple of reasons. The deal shows that consolidation is still moving at a rapid pace in this industry and that it is necessary for the traditional telecom players to compete against new entrants, such as the cable companies. Of course, many aren’t happy about it, because as more companies consoldiate, there is a fear that less competition will lead to higher prices for subscribers. Read more about this deal at USA Today. Filed under: Stock Watch Comments:
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