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To: C B P who wrote (58565)	2/25/1999 11:44:00 PM
From: MoneyMade	Read Replies (2) \| Respond to of 119973

Speculation that AT&T eyeing AOL- BusinessWeek NEW YORK, Feb 25 (Reuters) - Speculation that U.S. communications giant AT&T Corp may be eyeing online services provider America Online Inc (NYSE:AOL - news) for a merger has resurfaced on Wall Street, the March 8 issue of BusinessWeek reports. ''There are rumours on the Street that AOL may well be the target of the likes of AT&T for a merger of near-equals,'' the magazine's closely-watched Inside Wall Street column said. ''But analysts think AOL's huge market capitalisation of $83.5 billion would deter any potential partner.'' Veteran online industry analyst Gary Arlen of Arlen Communications in Bethesda, Maryland, said he was aware that the rumours of a potential AT&T-AOL tie-up had resurfaced in recent days but had no evidence there was anything to the talk. ''They sure are acting like lovers who want to make sure people don't know they are in love,'' Arlen said of the two companies. Still, he noted that in the current industry environment, ''anything is possible.'' The BusinessWeek column did not provide any sources or further details on the talks. There have been rumours in the past of such a blockbuster link-up. But AOL already forged a complicated three-way deal a year ago with AT&T's archrival MCI WorldCom Inc. (Nasdaq:WCOM - news) to acquire the online service CompuServe, with MCI providing AOL a large chunk of its Internet access network facilities. The column downplayed the rumours, saying analysts believe AOL shares keep climbing because the Dulles, Virginia-based company has strong fundamentals. The column said Warburg Dillon Read Internet analyst Michael Wallace sees AOL's worth at $110 per share at least while the company's stock on Thursday closed at $87.19 on the New York Stock Exchange. AT&T shares last traded in New York at $84.07. More Quotes and News: America Online Inc (NYSE:AOL - news) AT&T Corp (NYSE:T - news) MCI WorldCom Inc (Nasdaq:WCOM - news) Related News Categories: US Market News