re: <P/E under 30>, If earnings are $3.75, PE would be 24 at today's close. Separately:
AT&T Buys Phone-Card Company
DUBLIN, Ohio (AP) -- AT&T (NYSE:T - news) is buying SmarTalk Tele-Services Inc., a prepaid phone-card company, for $192.5 million in cash, giving the telecommunications giant an entry into the phone-card market.
The announcement on Tuesday came as SmarTalk, based in Dublin, Ohio, sought protection under federal bankruptcy laws.
The deal, which needs bankruptcy court and regulatory approval, includes $10 million to keep the company operating until the sale is closed, probably in late March, AT&T spokeswoman Eileen Connolly said.
SmarTalk and 19 affiliates filed for Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., on Tuesday.
SmarTalk sells the cards in increments of 15 to 300 minutes through 100,000 retail outlets and the U.S. Postal Service.
Shares of SmarTalk have been halted since Tuesday. The Nasdaq Stock Market has asked the company for more information on the press release it issued on the AT&T deal, but a Nasdaq spokesman would not disclose details of the request.
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