Updated from 8:09 a.m. Shares of BellSouth ( BLS) surged Monday as Wall Street embraced its $67 billion acquisition by AT&T ( T). Shares caught a 13% bid as several analysts praised the combination. Sunday night, AT&T -- which itself was created last year through a mega-merger involving SBC -- agreed to acquire BellSouth for stock worth $37.09 a share, an 18% premium to Friday night's close of $31.46. In premarket trading, BellSouth rose $4.04 to $35.50. AT&T fell 24 cents to $27.75. The combined company will have a market capitalization of about $165 billion and annual revenue of more than $120 billion. Besides scale, a key advantage of the merger will be the unification of Cingular, the country's largest wireless operator that had been run as a joint venture between AT&T and BellSouth. Early Monday, AT&T said on a conference call it expected to cut about 10,000 jobs over three years in the deal, which will combine AT&T, BellSouth and Cingular under the AT&T brand. AT&T had pledged to cut 13,000 jobs in the tie-up of SBC and AT&T and an added 13,000 in a belt-tightening push, also over three years. "With 100% ownership of Cingular, we expect AT&T to truly operate as one company, developing integrated wireline/wireless services and price packages that will be tough for other wireless carriers to duplicate in its region," wrote Wachovia analysts Monday. "This could most hurt Verizon Wireless over the long term. While the current price paid for BLS may discourage VZ from counter bidding, we would not rule it out. VZ may also respond by acquiring other wireless and wireline assets, but it remains challenged by Vodafone." Wachovia upgraded AT&T to outperform and reiterated an outperform on BellSouth. The brokerage said the transaction should pass antitrust muster because the two companies have relatively few overlapping assets. Verizon owns Verizon Wireless through a joint venture with Vodafone ( VOD). Shares of Vodafone rose 6% early Monday as traders anticipated a countermove by its wireless partner. Analysts at Bear Stearns also praised AT&T's deal, estimating that the combined company will control 69 million access lines, including 39 million retail consumers, 24 million retail businesses, 6 million wholesale lines and 10 million digital subscriber lines. By comparison, Verizon has about 49 million lines. To view Lauren Silva's video take on today's deal, click here .