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AT&T, BT talk merger?
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September 15, 2000: 6:47 p.m. ET
Largest U.S. long-distance phone co. considers merging units with BT
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NEW YORK (CNNfn) - AT&T Corp. and British Telecommunications PLC are in negotiations to merge two of their biggest businesses, according to FT.com, the Web site of the Financial Times.
The two companies are discussing combining each of their business services divisions into a stand-alone unit and merging their respective wireless businesses, the Web site reported Friday.
Such a deal would allow BT (BTY: Research, Estimates) and AT&T (T: Research, Estimates) to focus on their domestic wireless operations.
The companies have yet to strike a formal plan, and concerns about such a complex restructuring could derail the idea, FT.com said. AT&T Chairman Michael Armstrong pushed for the move as a way to revive the company's flagging stock.
 Such a union has been the topic of much speculation recently. On August 18, The Wall Street Journal reported that AT&T and BT were eyeing a merger.
AT&T's shares have fallen by nearly 50 percent in the past six months. BT's shares have also fallen nearly 50 percent, despite restructuring in April that was supposed to restore confidence in the company.
If the companies were to merge the separate units, such a deal would effectively involve a breakup of both AT&T and BT, FT.com said. Business customers accounted for nearly half, or $14 billion, of AT&T's $32 billion in revenues for the first half of this year.
BT has created a separate division, known as Ignite, which would handle its fast-growing international data services. BT and AT&T have formed a joint venture, Concert, which combined with Ignite would create a company focused on the international Internet market.
A merger of AT&T's and BT's wireless businesses would create a transatlantic operation with resources to build out third-generation mobile networks in Europe, FT.com said.
On May 2, AT&T earned $1.7 billion, or 53 cents a share, in the first quarter, flat with its earnings of $1.7 billion, or 61 cents a share, in the year-earlier quarter.
On Friday, AT&T gained 50 cents to $32.25 while BT fell $4.94 to close at $111.87. 
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