Child Is the Father to Mom, The

NJBIZ, Jan 31, 2005

Will former telecom heavyweight AT&T be gobbled up by a Baby Bell? Reports quoting unnamed executives say that San Antonio, Texas-based SBC Communications may acquire its Bedminster-based progenitor for $15 billion. AT&T spokesman Jim Byrnes says he "cannot comment on what is considered to be a rumor."

SBC was spun off from AT&T along with six other Baby Bells in 1984 as part of a break-up agreement with the U.S. Department of Justice. Ma Bell recently announced that it was essentially quitting its consumer operations. But SBC is attracted by AT&T's national and international corporate-client list, says Jeff Kagan, an Atlanta-based telecom analyst. He expects layoffs at AT&T if the buyout is completed. The last time AT&T came this close to being bought was in 2003 before talks with BellSouth, another Baby Bell, collapsed over price issues.