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AT&T, BT 'still talking'
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October 18, 2000: 3:56 a.m. ET
Telecom firm dismisses report of an end to talks on business services units
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LONDON (CNNfn) - AT&T Corp. and British Telecommunications PLC are still mulling plans to combine their business services activities, a BT spokesman said Wednesday, dismissing a published report that negotiations had broken down.
BT (BT-A) confirmed last month that it and U.S. telecom operator AT&T were discussing ways to strengthen the relationship between their business services units. However, the Wall Street Journal reported Wednesday that discussions on a merger had ended, citing people familiar with the situation.
A BT representative denied there had been any change in the situation, and said Wednesday the firms "were discussing many options of mutual benefit."
Earlier reports had indicated the two firms might try to cement their alliance with a full merger, although such a scenario would be sure to attract fierce regulatory scrutiny. The firms already have linked their international business services in a joint venture called Concert. 
Shares of both companies have suffered from a lack of investor enthusiasm. BT, Britain's biggest fixed-line operator, is undertaking a strategic review to discuss the best way to revive its performance, and has said it will discuss the results in December.
The U.K. company has also undergone a management upheaval. Finance boss Robert Brace resigned recently, and chairman Iain Vallance was the subject of speculation that he too, would step down early.
BT has been labouring under the burden of a £30 billion ($45 billion) debt, after investing to build up its presence in continental Europe. The firm plans to reduce its debt by a partial listing of its cellular arm, BT Cellnet.
BT stock was unchanged at 677 pence in early London trade Wednesday, though the shares have more than halved sine the beginning of the year.
In addition to a tie-up with BT, AT&T (T: Research, Estimates) has also explored the spin-off of its consumer long-distance business as a way to boost its sagging stock price. Shares of AT&T on Tuesday closed down $1 at a 52-week low of $23. 
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