Merrill Lynch: SBC-AT&T Combo Will Result in Savings
Analysts at financial advisory firm Merrill Lynch feel that the proposed acquisition of AT&T by SBC Communications will results in "substantial synergy savings associated with the deal, primarily related to headcount reductions."
Under the agreement reached over the weekend between the two companies, SBC will purchase AT&T for $16 Billion in stock and a special dividend. SBC expects to close the deal in the first half of 2006.
Merrill Lynch expects AT&T's revenues and profitability to decline in 2005. The advisory firm says they are moving to a No Rating on AT&T, as its stock "will no longer trade on the fundamentals." They maintain a neutral rating on SBC.
AB -- 1/31/05
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