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BT confirms AT&T talks
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September 17, 2000: 10:17 p.m. ET
Joint venture partners discuss the future of alliance after flurry of speculation
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NEW YORK (CNNfn) - British Telecommunications PLC confirmed Sunday it is in "continuing discussions" with U.S. joint venture partner AT&T Corp. about potentially deepening their alliance.
In a statement, the British company said the talks were part of a strategic review begun in April.
"Naturally, the strategic review includes continuing discussions with AT&T," the company said. "These discussions include exploring ways of broadening and strengthening the scope of the relationship between BT and AT&T in business services."
BT said the talks "may or may not" lead to any change in the existing alliance and a further announcement about the strategic review will be made later this year.
The announcement followed media speculation that the joint venture partners were in discussions about merging some of their units. BT and AT&T are partners in Concert, which provides communications services to multinational companies, and in the Advance wireless alliance.
Some U.S. analysts have speculated AT&T and BT could combine their corporate units with Concert and spin it off as a separately traded company.
Share prices of both companies have fallen nearly in half this year.  BT shares closed down 28 pence, or 3.4 percent, at a 10-month closing low of 795 pence Friday in London. AT&T (T: Research, Estimates) stock gained 50 cents to $32.25 on the New York Stock Exchange.
The next few weeks are regarded as a crucial test for AT&T. During a two-day retreat next week, AT&T's board will weigh spin-offs, tracking stocks or mergers. The company has also been in talks to merge various units with U.S. wireless carrier Nextel Communications (NXTL: Research, Estimates), according to Reuters, citing sources familiar with the talks. 
-- from staff and wire reports
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