SBC to Acquire AT&T

SBC(SBC Quote) formalized its agreement to take over AT&T(T Quote), ending more than a century of autonomy for the storied phone company and possibly spurring more deal-making in the telecommunications sector.

SBC will exchange stock and cash worth $16 billion, or roughly $19.71 an AT&T share, in the transaction. Most of the compensation is in the form of stock: for each share owned, AT&T shareholders will receive 0.77942 shares of SBC stock worth $18.41 at Friday's close.

AT&T, which closed at $19.71 Friday, was recently down 71 cents, or 3.6%, to $19 on Instinet. SBC fell 3 cents to $23.59. ...