Tech Stocks in Motion

Updated from 1:10 p.m. EST

Shares of AT&T(T) were among technology's most actively traded stocks Monday, after the venerable telecom company agreed to be acquired by SBC Communications(SBC) for about $16 billion.

SBC will issue stock and cash worth $19.71 an AT&T share in the deal. During 2004, SBC and AT&T had combined sales of about $71 billion. The acquisition is expected to close by the first half of 2006. "The combination of these two strong, complementary companies will ensure that together we will have all the capabilities necessary to compete successfully in serving a broad range of customers across the country and around the globe," AT&T's CEO said. Shares traded down 52 cents to $19.19 on heavy volume of 31.4 million shares, more than six times its daily average. SBC, meanwhile, traded up 14 cents to $23.76.

Creo(CREO) rose 12.7% after the printer software company agreed to be acquired by Eastman Kodak(EK) for about $980 million in cash, or $16.50 a share. The acquisition is expected to be accretive to operating earnings in 2006 and add sales of about $700 million to Kodak. Shares of Creo traded up $1.82 to $16.18. Eastman Kodak traded up 39 cents to $33.09.

Shares of M-Systems(FLSH) fell 1% after the company posted fourth-quarter earnings and sales above expectations but warned that first-quarter results will be below analysts' expectations. The flash memory maker earned 24 cents a share on sales of $114.1 million. Analysts polled by Thomson First Call were expecting earnings of 21 cents a share on sales of $110.3 million. Looking ahead, M-Systems forecast first-quarter earnings of at least 14 cents a share on sales of at least $90 million. Analysts had been expecting earnings of 19 cents a share on sales of $95.2 million. Shares traded down 17 cents to $20.11.