After being acquired by SBC last November, the newly rechristened AT&T has that it plans to buy fellow Baby Bell BellSouth Inc, of Atlanta, Georgia for USD 67 billion. This action by AT&T will consolidate more than half of the original Bell System into a single entity, leaving only Verizon and Qwest as remaining Bell family competitors. Analysts predict this deal will be approved by the FCC with only minor restrictions on the new company, which will serve residences and businesses from California to Florida."
Together, AT&T and BellSouth would have a national long-distance telephone and data network, residential customers stretching from Florida to California and business customers comprising more than half of the Fortune 1000, analysts have said. The next largest telephone company, Verizon Communications, has a market capitalization of USD 99.2 billion.
The deal would bring ownership of Cingular Wireless, the No. 1 U.S. wireless telephone company, under one roof, which Wall Street analysts have said would streamline management and allow one parent company to enjoy all of the financial benefits.
At the completion of the deal, which is expected to close within a year, all the landline and wireless businesses will exist under the sole brand name of AT&T, the companies said.
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