The boards of SBC ( SBC) and AT&T ( T) could vote as early as Sunday on a possible deal between the two telecom giants, according to published reports.

The Wall Street Journal Online reported Sunday that the proposed transaction would be for AT&T shareholders to get about $15 billion in SBC shares and an additional $1 billion in a special dividend.

Reports of the rekindled merger talks first surfaced Thursday. The New York Times reported then that the San-Antonio-based Baby Bell was in talks to buy AT&T.

Such a deal, which would create the largest U.S. telecom company, would have to pass stiff regulatory hurdles.

Consolidation in the telecom industry has been a common theme in recent years as competition, particularly from wireless service, has hurt the old-line telcos. Meanwhile, the wireless industry has seen a number of deals recently, including a $30 billion one between Nextel ( NXTL) and Sprint ( FON).

AT&T's stock gained 6.2% Thursday, and added another 0.56% Friday to close the week at $19.71. SBC shares fell about 3.7% Thursday, then dipped 0.21% Friday, closing at $23.62.