AT&T Corp is rumored to be negotiating a $3bn takeover of the New-York-based competitive operator Teleport Communications Group Inc, in a move to give long distance player AT&T an entry into the recently deregulated US local telecoms market. The deal is apparently in advanced stages of negotiation, according to London’s Financial Times, and Teleport’s major investors, Tele- Communications Inc, Cox Communications Inc and Comcast Corp are apparently interested in selling out to AT&T. Cashing in their investments is an attractive option at the moment, given that Teleport’s shares have doubled in value over the last six months from $30 to $60.13 per share on Wednesday. If AT&T goes through with the deal, it will become part of an impressive telecoms buying chain, as Teleport is in the process of taking over ACC Corp for $1bn, which is itself buying US Wats Inc (CI No 3,300).
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