BellSouth Risks Missing Turn at the Dance

BellSouth shares dropped 75 cents, or 3%, to $26.16 Monday.

But some observers say BellSouth need not be rash.

BellSouth could always stick it out alone until SBC came calling again in a year or two, says a Wall Street money manager.

One person familiar with discussions inside BellSouth says: "It does not appear that they're in a panic there, but they are definitely concerned by the shift in power. I think they are awaiting the FCC and Justice Department's take on the merger."

The SBC and AT&T deal will require approval from some 28 state regulatory boards, the Federal Communications Commission and federal antitrust officials. SBC expects the approval and closing process to take 17 months.

There is a $560 million breakup fee should either party back out of the deal. Analysts expect the deal will bring a big round of employee cuts but AT&T and SBC said Monday it was too early to discuss such plans.

SBC and AT&T plan a joint analysts conference at 1 p.m. EST Tuesday to share more details of the merger plan.