According to the story, the two telecommunications giants are in discussions to merge their respective business services units and their two wireless divisions. Officials at neither company have commented on the rumors.
The mergers, if they were to happen, would not be the first time the two companies have come together. They are both already partners in a venture called Concert, which provides telecommunications services to multinational companies.
Since the beginning of this year, both companies' shares have been under pressure. On Dec. 31, British Telecom shares reached their high point for the past 52 weeks, at $245. On Friday, the shares closed at $111.88.
Since hitting its 52-week high of $61 on March 29, AT&T shares have also fallen on hard times. On Friday, its shares closed at $32.25.