Report: BellSouth looking to buy Sprint

Local telephone giant BellSouth is actively pursuing a buyout of national long-distance and wireless telecom company Sprint, according to a report published Thursday in The Washington Post.

The Post cites sources "familiar with the talks" between BellSouth and Sprint. Furthermore, similar sources also are saying that SBC Communications has recently held merger talks with the second largest long-distance telephone company in the U.S., WorldCom, though talks have not been held in recent weeks, the Post said.

Asked about the report, a BellSouth spokesman said the company does not comment on speculation about mergers and acquisitions.

Any possible agreements are still months away, according to the report, but the general belief that the Bush administration would be less likely than the Clinton administration to interfere in any large scale mergers agreements, coupled with the currently softening U.S. economy and falling Wall Street share prices, are promoting such possible telecom unions.

Last July, a proposed merger between Sprint and WorldCom was killed off after the Department of Justice, under the Clinton administration, filed an antitrust lawsuit in an attempt to block the merger in federal court.

Last October, SBC Communications and BellSouth merged their cellular operations to create Cingular Wireless, a wireless carrier that is second in size only to Verizon Communications.

BellSouth, in Atlanta, Ga., is at http://www.bellsouth.com/. Sprint, in Westwood, Kan., is at http://www.sprint.com/. WorldCom, in Jackson, Miss., is at http://www.wcom.com/. Cingular Wireless, in Atlanta, is at http://www.cingular.com/.

The IDG News Service is a Network World affiliate.