AT&T Wireless Rises on Report of Merger Talks With Cingular

The shares added more than 5% Tuesday as rumors of the talks spread.
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AT&T Wireless

(AWE)

was rising for a second day in the Wednesday premarket following a report it is in merger talks with

SBC

(SBC)

and

BellSouth's

(BLS)

Cingular.

The two sides recently began another round of discussions about a merger or acquisition following an initial round last year, and could put together a deal soon,

The Wall Street Journal

reported.

The newspaper previously reported that Cingular is weighing an initial public offering and is particularly interested in AT&T Wireless because of its strong balance sheet and large number of business subscribers. Representatives from Cingular's parent companies refused to comment on the story.

AT&T Wireless was recently up 60 cents, or 7%, to $9.15 on the Instinet premarket session. The shares rose more than 5% in Tuesday's session as rumors of the talks spread.