Original URL: http://www.theregister.co.uk/2006/03/07/att_cut_to_sell/

AT&T 'overpaying' for BellSouth - S&P

Job cuts galore

By Drew Cullen

Posted in Networks, 7th March 2006 19:02 GMT

Standard and Poor's has downgraded its rating of AT&T to 'sell', following the US telecom firm's proposed $67bn acquisition of BellSouth. The credit rating agency says the deal has its merits - but AT&T is paying too much.

S&P analyst Todd Rosenbluth also thinks that the "regulatory approval process will be lengthy given the size of the deal… In addition, AT&T is still in the early stages of integrating two large acquisitions that we think will pressure its margins".

Still, AT&T has given an early indication of how it intends to cut costs. It aims to cut 10,000 jobs post-merger, according to wire reports. ®