AT&T Inc. said on Sunday it would buy BellSouth Corp. for $67 billion to expand its reach into the southeastern United States and acquire the rest of Cingular Wireless it does not already own.

Together, AT&T and BellSouth would have a national long-distance telephone and data network, residential customers in 22 states and business customers comprising more than half of the Fortune 1000, analysts have said.

BellSouth shareholders will receive 1.325 shares of AT&T common stock for each common share of BellSouth. Based on AT&T’s closing stock price on March 3, that equals $37.09 per BellSouth common share, a 17.9-percent premium.

Source: Reuters