ATT Buys BellSouth, Cuts 10,000 Jobs

[Barry]

ATT agreed to buy BellSouth for $67 billion in stock and expects to cut 10,000 jobs between 2007 and 2009, once the acquisition closes. That means all three firms will now be Cingular Wireless. The purchase of BellSouth recombines the former AT&T (Research), also known as "Ma Bell," with four of the seven original "Baby Bell" regional telephone companies that were split off when AT&T was broken up by a court order in 1984.

Together, AT&T and BellSouth (Research) 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.

BellSouth stock jumped about 11 percent in morning trading while AT&T fell about 1 percent, both on the NYSE.

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