Sbc To Buy Snet For $4.4 Billion In Stock
NEW HAVEN, Conn. - SBC Communications, the Texas-based regional telephone company, said today it will acquire Southern New England Telecommunications (SNET) for $4.4 billion in stock.
SBC is a combination of Pacific Telesis and the company formerly known as Southwestern Bell. It serves customers in seven states including Texas and California.
In the deal, holders of SNET common stock would receive 0.8784 of a share of SBC common stock for each share of SNET common stock in a tax-free exchange. Based on SBC's closing stock price on Friday, of $74.938, the deal represents a value of about $65.83 for each SNET share.
In late trading today on the New York Stock Exchange, SNET shares were trading up 21 percent, or $10.375, at $60. SBC shares were down 3.2 percent, or $2.375 at $72.563.