AT&T Inc · S-4/A · On 6/2/06
Filed On 6/2/06 1:22pm ET · SEC File 333-132904 · Accession Number 950123-6-7322
As Of Filer Filing As/For/On Docs:Pgs Issuer Agent
6/02/06 AT&T Inc S-4/A 16:269 Bowne of NY City...01/FA
Pre-Effective Amendment to Registration of Securities Issued in a Business-Combination Transaction · Form S-4
Filing Table of Contents
Document/Exhibit Description Pages Size
1: S-4/A Amendment No. 2 to Form S-4 HTML 1,450K
2: EX-5.1 Ex-5.1: Opinion of Wayne A. Wirtz HTML 9K
3: EX-8.1 Ex-8.1: Opinion of Sullivan & Cromwell Llp HTML 9K
4: EX-8.2 Ex-8.2: Opinion of Fried, Frank, Harris, Shriver & HTML 14K
Jacobson Llp
5: EX-23.1 Ex-23.1: Consent of Ernst & Young Llp HTML 8K
6: EX-23.2 Ex-23.2: Consent of Pricewaterhousecoopers Llp HTML 7K
7: EX-23.3 Ex-23.3: Consent of Ernst & Young Llp HTML 7K
8: EX-23.4 Ex-23.4: Consent of Pricewaterhousecoopers Llp HTML 7K
9: EX-23.5 Ex-23.5: Consent of Pricewaterhousecoopers Llp HTML 7K
10: EX-23.6 Ex-23.6: Consent of Pricewaterhousecoopers Llp HTML 6K
11: EX-99.1 Ex-99.1: Form of Proxy Card HTML 20K
12: EX-99.2 Ex-99.2: Form of Proxy Card HTML 15K
13: EX-99.7 Ex-99.7: Consent of Lehman Brothers Inc. HTML 9K
14: EX-99.9 Ex-99.9: Consent of Citigroup Global Markets Inc. HTML 8K
15: EX-99.10 Ex-99.10: Consent of Goldman, Sachs & Co. HTML 10K
16: EX-99.12 Ex-99.12: Consolidated Shareholders' Class Action HTML 54K
Complaint
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- Alternative Formats (RTF, XML, et al.)
- Access to Corporate Records, Financial Statements and Related Matters
- Accounting Treatment
- Agreement and Plan of Merger among BellSouth Corporation, AT&T Inc. and ABC Consolidation Corp., dated as of March 4, 2006
- Alternative Acquisition Proposals
- Amendment, Extension and Waiver
- Amendments of Organizational Documents
- Annex A
- Annex B
- Annex C
- Annex D
- Annex E
- Annual Meeting of Shareholders
- Anti-Takeover and Ownership Provisions
- At&T
- AT&T Common Shares
- AT&T Preferred Shares
- AT&T s Post-Closing Directors and Officers
- AT&T s Reasons for the Merger
- Background of the Merger
- BellSouth
- BellSouth s Reasons for the Merger
- By-Law Amendments
- Cautionary Statement Concerning Forward-Looking Statements
- Certain Financial Projections
- Classes and Series of Capital Stock
- Closing and Effectiveness of the Merger
- Companies, The
- Comparative Market Data
- Comparative Per Share Market Price Data and Dividend Information
- Comparison of Shareholder Rights
- Completion of the Merger
- Conditions to Closing
- Conditions to the Merger
- Covenants and Agreements
- Description of AT&T Capital Stock
- Dissenters and Appraisal Rights
- Dissenters Rights
- Dividends
- Effect of Termination
- Effect of Termination; Termination Fees
- Expenses of Solicitation
- Experts
- Fairness Opinion of Citigroup Global Markets Inc
- Fairness Opinion of Evercore Group Inc
- Fairness Opinion of Goldman, Sachs & Co
- Fairness Opinion of Lehman Brothers Inc
- Filling Vacancies on the Board of Directors
- Financial Analyses of BellSouth s Financial Advisors
- General; Date; Time and Place
- Householding
- How to Vote
- Indemnification of Directors and Officers
- Information About the AT&T Special Meeting
- Information About the BellSouth Special Meeting
- Interests of BellSouth Executive Officers and Directors in the Merger
- Interests of BellSouth s Executive Officers and Directors in the Merger
- Legal Matters
- Limitation of Personal Liability of Directors
- Litigation Relating to the Merger
- Material United States Federal Income Tax Consequences
- Merger Agreement, The
- Merger Consideration
- Merger Fees, Costs and Expenses
- Merger Sub
- Merger, The
- New Directors and Management of AT&T Following the Merger
- New York Stock Exchange Listing; Delisting and Deregistration of BellSouth Common Shares
- No Dissenters Rights
- No Shareholder Rights Plan
- Number and Qualification of Directors
- Opinions of AT&T s Financial Advisors
- Opinions of BellSouth s Financial Advisors
- Procedures for Exchange of BellSouth Common Shares for AT&T Common Shares
- Purpose of the AT&T Special Meeting
- Purpose of the Special Meeting
- Questions about Voting Your Shares
- Questions and Answers
- Quorum
- Recommendation
- Recommendation of AT&T s Board of Directors
- Recommendation of BellSouth s Board of Directors
- Recommendation of the AT&T Board of Directors
- Recommendation of the BellSouth Board of Directors
- Record Date; Voting Power
- Regulatory Matters Related to the Merger
- Removal of Directors
- Representations and Warranties
- Repurchase of AT&T Common Shares
- Required Vote
- Resale of AT&T Common Shares
- Risk Factors
- Risk Factors Relating to AT&T Following the Merger
- Risk Factors Relating to the Merger
- Selected Historical Financial Data of AT&T Inc
- Selected Historical Financial Data of BellSouth
- Selected Unaudited Pro Forma Condensed Combined Financial Data as of and for the Quarter Ended March 31, 2006
- Selected Unaudited Pro Forma Condensed Combined Financial Data as of and for the Year Ended December 31, 2005
- Shareholder Action Without a Meeting
- Shareholder Nominations and Proposals
- Shareholder Proposals
- Shareholder Rights Plan
- Special Meetings of Shareholders
- Specific Performance
- Summary
- Table of Contents
- Termination Fees and Expenses
- Termination of the Merger Agreement
- The Companies
- The Merger
- The Merger Agreement
- To Attend the AT&T Special Meeting
- To Attend the BellSouth Special Meeting
- Treatment of BellSouth Stock Options and Stock-Based Awards
- Unaudited Comparative Per Share Data for the Quarter Ended March 31, 2006
- Unaudited Comparative Per Share Data for the Year Ended December 31, 2005
- Unaudited Pro Forma Condensed Combined Financial Information as of and for the Quarter Ended March 31, 2006
- Unaudited Pro Forma Condensed Combined Statement of Income for the Year Ended December 31, 2005
- Vote on Mergers and Certain Other Transactions
- Where You Can Find More Information
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| 1 | 1st Page
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| " | Table of Contents
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| " | Questions and Answers
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| " | Summary
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| " | The Companies
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| " | The Merger
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| " | Merger Consideration
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| " | Recommendation of the AT&T Board of Directors
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| " | Recommendation of the BellSouth Board of Directors
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| " | Opinions of AT&T s Financial Advisors
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| " | Opinions of BellSouth s Financial Advisors
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| " | Treatment of BellSouth Stock Options and Stock-Based Awards
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| " | Interests of BellSouth Executive Officers and Directors in the Merger
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| " | Material United States Federal Income Tax Consequences
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| " | Procedures for Exchange of BellSouth Common Shares for AT&T Common Shares
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| " | Accounting Treatment
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| " | Regulatory Matters Related to the Merger
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| " | Completion of the Merger
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| " | No Dissenters Rights
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| " | The Merger Agreement
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| " | Alternative Acquisition Proposals
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| " | Conditions to Closing
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| " | Termination of the Merger Agreement
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| " | Effect of Termination; Termination Fees
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| " | Recommendation
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| " | Selected Historical Financial Data of AT&T Inc
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| " | Selected Historical Financial Data of BellSouth
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| " | Selected Unaudited Pro Forma Condensed Combined Financial Data as of and for the Quarter Ended March 31, 2006
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| " | Unaudited Comparative Per Share Data for the Quarter Ended March 31, 2006
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| " | Unaudited Comparative Per Share Data for the Year Ended December 31, 2005
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| " | Comparative Market Data
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| " | Comparative Per Share Market Price Data and Dividend Information
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| " | Risk Factors
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| " | Risk Factors Relating to the Merger
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| " | Risk Factors Relating to AT&T Following the Merger
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| " | BellSouth
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| " | At&T
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| " | Merger Sub
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| " | Background of the Merger
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| " | AT&T s Reasons for the Merger
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| " | BellSouth s Reasons for the Merger
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| " | Certain Financial Projections
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| " | Unaudited Pro Forma Condensed Combined Financial Information as of and for the Quarter Ended March 31, 2006
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| " | Financial Analyses of BellSouth s Financial Advisors
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| " | Interests of BellSouth s Executive Officers and Directors in the Merger
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| " | Merger Fees, Costs and Expenses
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| " | Dissenters Rights
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| " | Resale of AT&T Common Shares
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| " | Repurchase of AT&T Common Shares
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| " | New York Stock Exchange Listing; Delisting and Deregistration of BellSouth Common Shares
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| " | Litigation Relating to the Merger
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| " | Information About the AT&T Special Meeting
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| " | General; Date; Time and Place
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| " | Purpose of the AT&T Special Meeting
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| " | Record Date; Voting Power
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| " | Required Vote
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| " | Recommendation of AT&T s Board of Directors
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| " | Quorum
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| " | How to Vote
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| " | To Attend the AT&T Special Meeting
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| " | Expenses of Solicitation
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| " | Questions about Voting Your Shares
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| " | Information About the BellSouth Special Meeting
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| " | Purpose of the Special Meeting
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| " | Recommendation of BellSouth s Board of Directors
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| " | Householding
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| " | To Attend the BellSouth Special Meeting
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| " | Closing and Effectiveness of the Merger
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| " | AT&T s Post-Closing Directors and Officers
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| " | Representations and Warranties
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| " | Covenants and Agreements
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| " | Conditions to the Merger
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| " | Effect of Termination
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| " | Termination Fees and Expenses
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| " | Amendment, Extension and Waiver
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| " | Specific Performance
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| " | Unaudited Pro Forma Condensed Combined Statement of Income for the Year Ended December 31, 2005
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| " | New Directors and Management of AT&T Following the Merger
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| " | Description of AT&T Capital Stock
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| " | AT&T Common Shares
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| " | AT&T Preferred Shares
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| " | No Shareholder Rights Plan
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| " | Comparison of Shareholder Rights
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| " | Classes and Series of Capital Stock
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| " | Annual Meeting of Shareholders
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| " | Special Meetings of Shareholders
|
| " | Shareholder Action Without a Meeting
|
| " | Shareholder Nominations and Proposals
|
| " | Access to Corporate Records, Financial Statements and Related Matters
|
| " | Amendments of Organizational Documents
|
| " | By-Law Amendments
|
| " | Dividends
|
| " | Dissenters and Appraisal Rights
|
| " | Number and Qualification of Directors
|
| " | Filling Vacancies on the Board of Directors
|
| " | Removal of Directors
|
| " | Limitation of Personal Liability of Directors
|
| " | Indemnification of Directors and Officers
|
| " | Shareholder Rights Plan
|
| " | Vote on Mergers and Certain Other Transactions
|
| " | Anti-Takeover and Ownership Provisions
|
| " | Experts
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| " | Legal Matters
|
| " | Shareholder Proposals
|
| " | Where You Can Find More Information
|
| " | Cautionary Statement Concerning Forward-Looking Statements
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| " | Annex A
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| " | Agreement and Plan of Merger among BellSouth Corporation, AT&T Inc. and ABC Consolidation Corp., dated as of March 4, 2006
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| " | Selected Unaudited Pro Forma Condensed Combined Financial Data as of and for the Year Ended December 31, 2005
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| " | Annex B
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| " | Fairness Opinion of Lehman Brothers Inc
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| " | Annex C
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| " | Fairness Opinion of Evercore Group Inc
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| " | Annex D
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| " | Fairness Opinion of Citigroup Global Markets Inc
|
| " | Annex E
|
| " | Fairness Opinion of Goldman, Sachs & Co
|
This is an EDGAR HTML document rendered as filed. [ Alternative Formats ]
As filed with the Securities and Exchange Commission on
June 2, 2006
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 2
to
Form S-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
AT&T INC.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
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4813 |
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43-1301883 |
(State or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(IRS Employer
Identification Number) |
175 East Houston
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)
Ann Effinger Meuleman
AT&T Inc.
175 East Houston
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies to:
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Joseph B. Frumkin, Esq.
Eric M. Krautheimer, Esq.
Sullivan & Cromwell LLP
125 Broad Street
New York, New York 10004
Tel: (212) 558-4000
Fax: (212) 558-3588 |
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Wayne A. Wirtz, Esq.
AT&T Inc.
175 East Houston
San Antonio, Texas 78205
Tel: (210) 821-4105
Fax: (210) 351-3467 |
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Stacey K. Geer, Esq.
BellSouth Corporation
1155 Peachtree Street, N.E.
Atlanta, Georgia 30309
Tel: (404) 249-4445
Fax: (404) 249-4766 |
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Arthur Fleischer, Jr., Esq.
Philip Richter, Esq.
Fried, Frank, Harris,
Shriver & Jacobson LLP
One New York Plaza
New York, New York 10004
Tel: (212) 859-8000
Fax: (212) 859-4000 |
Approximate date of commencement of proposed sale to the
public: As soon as practicable after this registration
statement becomes effective and upon completion of the
transactions described in the enclosed prospectus.
If the securities being registered on this Form are being
offered in connection with the formation of a holding company
and there is compliance with General Instruction G, check the
following
box. o
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering. o
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering. o
The registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until this Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
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PROXY STATEMENT |
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PROXY STATEMENT |
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AND PROSPECTUS OF AT&T INC. |
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OF BELLSOUTH CORPORATION |
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Dear Shareholders:
The boards of directors of AT&T and BellSouth have agreed to
combine in a merger that will result in a more effective and
efficient provider of wireless, broadband, video, voice, data
and directory services. It will also put control of Cingular
Wireless in one company. We are very excited about the prospects
for the combined company.
If the merger is completed, BellSouth shareholders will receive
1.325 AT&T common shares for each BellSouth common share
held immediately prior to the merger.
Based on the closing price of $27.99 per AT&T common
share on the New York Stock Exchange on
March 3, 2006, the
last trading day before the public announcement of the merger,
the 1.325 exchange ratio represented approximately
$37.09 per BellSouth common share, a 17.9% premium over the
closing price of the BellSouth common shares on the NYSE on
March 3, 2006. Based on the closing price of $26.91 per
AT&T common share on the NYSE on
June 1, 2006, the
latest practicable date before the printing of this joint proxy
statement/prospectus, the total merger consideration was valued
at approximately $35.66 per BellSouth common share. Because the
number of AT&T common shares to be issued in exchange for
each BellSouth common share is fixed, the actual value of the
merger consideration that BellSouth shareholders will receive at
the time of the merger for each BellSouth common share will
depend on the price per AT&T common share at that time.
Based on the estimated number of BellSouth common shares
outstanding on the record date for the meetings, AT&T
expects to issue approximately 2,400,000,000 AT&T common
shares to BellSouth shareholders in the merger. Former BellSouth
shareholders are expected to own approximately 38% of the
AT&T common shares outstanding immediately after the merger.
AT&T common shares are quoted on the NYSE under the symbol
“T”. BellSouth common shares are quoted on the NYSE
under the symbol
“BLS”.
Each company is holding a special meeting of shareholders in
order to obtain the shareholder approvals necessary to complete
the merger as more fully described in this joint proxy
statement/ prospectus. The accompanying joint proxy
statement/prospectus provides a detailed description of the
proposed merger and the merger consideration. In addition, it
provides you with important information regarding these
meetings.
We urge you to read the enclosed materials (and any
documents incorporated by reference into this joint proxy
statement/ prospectus) carefully. Please pay particular
attention to the “Risk Factors” section beginning on
page 17.
We cannot complete the merger unless the shareholders of both of
our companies approve proposals related to the merger. Your
vote is very important, regardless of the number of shares you
own. Whether or not you expect to attend either special meeting,
please vote all proxy cards that you receive as soon as possible
to ensure that your shares are represented at the applicable
special meeting. If you are a BellSouth shareholder, please note
that a failure to vote your shares is the equivalent of a vote
against the merger. If you are an AT&T shareholder,
please note that a failure to vote your shares may result in an
insufficient number of shares being voted at the AT&T
special meeting for the proposal to issue AT&T common shares
to be approved. Registered and many broker-managed shareholders
can vote their shares by using a toll-free telephone number or
the Internet. Instructions for using these convenient services
are provided on the accompanying proxy card. Of course, you may
still vote your shares by marking your votes on the accompanying
proxy card, signing and dating it and mailing it in the envelope
provided. If you sign and return your proxy card without
specifying your choices, it will be understood that you wish to
have your shares voted in accordance with your board of
directors’ recommendations. If you are a shareholder of
both AT&T and BellSouth, you will receive two separate
packages of proxy materials. Please sign, date and return
all proxy cards that you receive, whether from AT&T
or BellSouth, or vote as either an AT&T or BellSouth
shareholder by Internet or telephone. If you have any questions
or need assistance voting your shares, please call
D.F. King & Co., Inc., who is assisting
AT&T, toll free at
(800) 431-9643 or
collect at
(212) 269-5550, if
you are an AT&T shareholder, or Morrow & Co.,
Inc., who is assisting BellSouth, toll free at
(877) 366-1576, if
you are a BellSouth shareholder.
The AT&T board of directors recommends that AT&T
shareholders vote “FOR” the proposal to authorize the
issuance of AT&T common shares required to be issued to
BellSouth shareholders pursuant to the merger agreement. The
BellSouth board of directors recommends that BellSouth
shareholders vote “FOR” the proposal to approve the
merger agreement.
Sincerely,
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F. Duane Ackerman |
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Chairman of the Board and Chief Executive Officer
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Chairman of the Board and Chief Executive Officer |
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AT&T Inc.
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BellSouth Corporation |
Neither the Securities and Exchange Commission
(“SEC”) nor any state securities commission has
approved or disapproved of the securities to be issued in
connection with the merger or passed upon the adequacy or
accuracy of this document. Any representation to the contrary is
a criminal offense.
This joint proxy statement/prospectus is dated June 2,
2006 and is expected to be first mailed to AT&T’s
shareholders on or about June 7, 2006 and to
BellSouth’s shareholders on or about June 8,
2006.
REFERENCE TO ADDITIONAL INFORMATION
This joint proxy statement/ prospectus incorporates by reference
important business and financial information about AT&T and
BellSouth from documents that are not included in or delivered
with this joint proxy statement/prospectus. For a listing of the
documents incorporated by reference into this joint proxy
statement/ prospectus, see
“Where You Can Find More
Information” beginning on page 136. This information
is available to you without charge upon your written or oral
request. You can obtain documents related to AT&T and
BellSouth that are
incorporated by reference into this joint
proxy statement/ prospectus, without charge, from the SEC’s
Web site (
www.sec.gov) or by requesting them in writing or
by telephone from the appropriate company.
(All
Web site addresses given in this joint proxy statement/
prospectus are for information only and are not intended to be
an active link or to incorporate any
Web site information into
this joint proxy statement/ prospectus.)
Please note that copies of the documents provided to you will
not include exhibits, unless the exhibits are specifically
incorporated by reference into the documents or this joint proxy
statement/ prospectus.
In order to receive timely delivery of requested documents in
advance of the special meetings, you should make your request no
later than July 14, 2006.
ABOUT THIS DOCUMENT
This document, which forms part of a registration statement on
Form
S-4 filed
with the SEC by AT&T (File
No.
333-132904),
constitutes a prospectus of AT&T under Section 5 of the
Securities Act of 1933, which we refer to as the Securities Act,
with respect to the AT&T common shares to be issued to
BellSouth shareholders as required by the merger agreement. This
document also constitutes a joint proxy statement under
Section 14(a) of the Securities Exchange Act of 1934, which
we refer to as the Exchange Act. It also constitutes a notice of
meeting with respect to the special meeting of AT&T
shareholders, at which AT&T’s shareholders will be
asked to consider and vote upon a proposal to authorize the
issuance of AT&T common shares required to be issued to
BellSouth shareholders pursuant to the merger agreement, and a
notice of meeting with respect to the special meeting of
BellSouth shareholders, at which BellSouth’s shareholders
will be asked to consider and vote upon a proposal to approve
the merger agreement.
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AT&T INC.
175 E. Houston
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
To AT&T Shareholders:
A special meeting of shareholders of AT&T Inc., a Delaware
corporation (
“AT&T”), will be held at
3:00 p.m. Central time on Friday,
July 21, 2006, at the
Charline McCombs Empire Theatre, 226 North
St. Mary’s Street, San Antonio, Texas, for the
following purposes:
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To consider and vote upon a proposal to authorize the issuance
of AT&T common shares required to be issued in the merger of
ABC Consolidation Corp., a Georgia corporation and a
wholly-owned subsidiary of AT&T (“Merger Sub”),
with and into BellSouth Corporation, a Georgia corporation, as
contemplated by the Agreement and Plan of Merger, dated as of
March 4, 2006, by and among BellSouth, AT&T and Merger
Sub, as that agreement may be amended; and |
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To conduct any other business as may properly come before the
special meeting or any properly reconvened meeting following an
adjournment or postponement of the special meeting. |
Holders of record of AT&T common shares at the close of
business on
June 1, 2006, are entitled to vote at the
special meeting and any adjournment or postponement of the
special meeting. A list of these shareholders will be available
for inspection during business hours from July 7 through
July 20, 2006, at 175 E. Houston,
San Antonio, Texas, and will also be available at the
special meeting.
Your vote is very important. Your proxy is being solicited by
the AT&T Board of Directors. The issuance of new shares of
AT&T common shares must be authorized by the shareholders of
AT&T in order for the merger to be completed.
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By Order of the AT&T Board of Directors. |
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Ann Effinger Meuleman |
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Vice President and Secretary |
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AT&T Inc. |
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June 2, 2006 |
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IMPORTANT NOTICE
If you do not plan to attend the special meeting to vote your
shares, please complete, date, sign and promptly mail the
enclosed proxy card in the return envelope provided. No postage
is necessary if mailed in the United States. Shareholders of
record and many broker-managed shareholders may also give their
proxy by telephone or through the Internet in accordance with
the instructions accompanying the proxy card. Any person giving
a proxy has the power to revoke it at any time, and shareholders
who are present at the meeting may withdraw their proxies and
vote in person.
iii
BellSouth Corporation
1155 Peachtree Street, N.E.
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
To BellSouth Shareholders:
A special meeting of shareholders of BellSouth Corporation, a
Georgia corporation (
“BellSouth”), will be held at
11:00 a.m. Eastern time on Friday,
July 21, 2006, at the
Cobb Galleria Centre, 2 Galleria Parkway,
Atlanta,
Georgia
30339, for the following purposes:
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To consider and vote upon a proposal to approve the Agreement
and Plan of Merger, dated as of March 4, 2006, by and among
BellSouth, AT&T Inc. and a wholly-owned subsidiary of
AT&T, as that agreement may be amended; and |
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To conduct any other business that may properly come before the
special meeting or any properly reconvened meeting following an
adjournment or postponement of the special meeting. |
Holders of record of BellSouth common shares at the close of
business on
June 1, 2006 are entitled to vote at the special
meeting and any adjournment of the special meeting. Your shares
can be voted at the special meeting only if you are present or
represented by a valid proxy. Shareholders who owned BellSouth
common shares as of the record date will be admitted to the
special meeting with verification of ownership, such as an
account statement or a valid admission card as attached to the
proxy card.
Your vote is important. Please vote as soon as possible
in one of the following ways, even if you plan to attend the
meeting:
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By Internet — visit the website on the proxy
card or in your e-mail
notice; or |
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By telephone — use the toll-free telephone
number on the proxy card; or |
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By mail — mark, sign, date and promptly return
the enclosed proxy card(s) in the postage-paid envelope. |
You may also submit a ballot at the special meeting on
July
21, 2006.
By Order of the BellSouth Board of Directors.
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Rebecca M. Dunn |
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Senior Vice President — Corporate Compliance and
Corporate Secretary |
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BellSouth Corporation |
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June 2, 2006 |
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IMPORTANT NOTICE
For the merger agreement to be approved by BellSouth
shareholders, a majority of the outstanding BellSouth common
shares must be voted in favor of approval of the merger
agreement. Accordingly, if you do not vote your BellSouth common
shares, it will have the same effect as a vote against approval
of the merger agreement and the merger. Please vote your
shares.
If you do not plan to attend the special meeting to vote your
shares, please complete, date, sign and promptly mail the
enclosed proxy card(s) in the return envelope provided. No
postage is necessary if mailed in the United States.
Shareholders of record and many broker-managed shareholders may
also give their proxy by telephone or through the Internet in
accordance with the instructions accompanying the proxy card(s).
Any person giving a proxy has the power to revoke it at any
time, and shareholders who are present at the meeting may
withdraw their proxies and vote in person.
Please do not send share certificates at this time. If the
merger is completed, you will be sent instructions regarding the
surrender of your share certificates.
iv
v
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To Attend the AT&T Special
Meeting |
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71 |
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Expenses of Solicitation |
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71 |
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Questions about Voting Your
Shares |
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71 |
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Information About the BellSouth Special
Meeting |
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72 |
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General; Date; Time and Place |
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72 |
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Purpose of the Special Meeting |
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72 |
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Record Date; Voting Power |
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72 |
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Required Vote |
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72 |
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Recommendation of BellSouth’s
Board of Directors |
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73 |
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Quorum |
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73 |
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How to Vote |
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73 |
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Householding |
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74 |
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To Attend the BellSouth Special
Meeting |
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74 |
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Expenses of Solicitation |
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75 |
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Questions about Voting Your
Shares |
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75 |
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The Merger Agreement |
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76 |
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The Merger |
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76 |
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Closing and Effectiveness of the
Merger |
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76 |
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AT&T’s Post-Closing
Directors and Officers |
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76 |
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Merger Consideration |
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77 |
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Representations and Warranties |
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78 |
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Covenants and Agreements |
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79 |
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Conditions to the Merger |
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91 |
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Termination of the Merger
Agreement |
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94 |
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Effect of Termination |
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95 |
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Termination Fees and Expenses |
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95 |
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Amendment, Extension and Waiver |
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97 |
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Specific Performance |
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97 |
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Unaudited Pro Forma Condensed Combined
Financial Information as of and for the Quarter Ended
March 31, 2006 |
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98 |
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Unaudited Pro Forma Condensed Combined
Statement of Income for the Year Ended December 31,
2005 |
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109 |
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New Directors and Management of AT&T
Following the Merger |
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118 |
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Description of AT&T Capital
Stock |
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119 |
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AT&T Common Shares |
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119 |
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AT&T Preferred Shares |
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119 |
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No Shareholder Rights Plan |
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119 |
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Comparison of Shareholder Rights |
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120 |
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Classes and Series of Capital
Stock |
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120 |
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Annual Meeting of Shareholders |
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120 |
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Special Meetings of Shareholders |
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121 |
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Shareholder Action Without a
Meeting |
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122 |
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Shareholder Nominations and
Proposals |
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122 |
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Access to Corporate Records,
Financial Statements and Related Matters |
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124 |
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Amendments of Organizational
Documents |
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125 |
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By-Law Amendments |
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125 |
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Dividends |
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126 |
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Dissenters’ and Appraisal
Rights |
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126 |
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Number and Qualification of
Directors |
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127 |
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Filling Vacancies on the Board of
Directors |
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128 |
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Removal of Directors |
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128 |
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Limitation of Personal Liability of
Directors |
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129 |
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Indemnification of Directors and
Officers |
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129 |
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Shareholder Rights Plan |
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130 |
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Vote on Mergers and Certain Other
Transactions |
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131 |
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Anti-Takeover and Ownership
Provisions |
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132 |
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Experts |
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135 |
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Legal Matters |
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135 |
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Shareholder Proposals |
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135 |
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Where You Can Find More
Information |
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136 |
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Cautionary Statement Concerning
Forward-Looking Statements |
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137 |
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Agreement and Plan of Merger among
BellSouth Corporation, AT&T Inc. and ABC Consolidation
Corp., dated as of March 4, 2006 |
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A-1 |
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Fairness Opinion of Lehman Brothers
Inc. |
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B-1 |
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Fairness Opinion of Evercore Group
Inc. |
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C-1 |
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Fairness Opinion of Citigroup Global
Markets Inc. |
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D-1 |
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Fairness Opinion of Goldman,
Sachs & Co. |
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E-1 |
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| EX-5.1: OPINION OF WAYNE A. WIRTZ |
| EX-8.1: OPINION OF SULLIVAN & CROMWELL LLP |
| EX-8.2: OPINION OF FRIED, FRANK, HARRIS, SHRIVER & JACOBSON LLP |
| EX-23.1: CONSENT OF ERNST & YOUNG LLP |
| EX-23.2: CONSENT OF PRICEWATERHOUSECOOPERS LLP |
| EX-23.3: CONSENT OF ERNST & YOUNG LLP |
| EX-23.4: CONSENT OF PRICEWATERHOUSECOOPERS LLP |
| EX-23.5: CONSENT OF PRICEWATERHOUSECOOPERS LLP |
| EX-23.6: CONSENT OF PRICEWATERHOUSECOOPERS LLP |
| EX-99.1: FORM OF PROXY CARD |
| EX-99.2: FORM OF PROXY CARD |
| EX-99.7: CONSENT OF LEHMAN BROTHERS INC. |
| EX-99.9: CONSENT OF CITIGROUP GLOBAL MARKETS INC. |
| EX-99.10: CONSENT OF GOLDMAN, SACHS & CO. |
| EX-99.12: CONSOLIDATED SHAREHOLDERS' CLASS ACTION COMPLAINT |
vi
QUESTIONS AND ANSWERS
The following are some of the questions that you, as a
shareholder of AT&T or BellSouth, may have, and answers to
those questions. These questions and answers, as well as the
following summary, are not meant to be a substitute for the
information contained in the remainder of this joint proxy
statement/prospectus, and this information is qualified in its
entirety by the more detailed descriptions and explanations
contained elsewhere in this joint proxy statement/prospectus. We
urge you to read this joint proxy statement/prospectus in its
entirety prior to making any decision.
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Q1: |
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Why am I receiving this joint proxy statement/prospectus? |
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A1: |
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AT&T and BellSouth have agreed to combine their respective
businesses by means of a merger. We expect the combined company
will be a more effective and efficient provider in the wireless,
broadband, video, voice and data markets. It will also put
control of Cingular Wireless in one company. |
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AT&T is holding a special meeting of shareholders in order
to obtain the shareholder approval necessary to issue AT&T
common shares in the merger, as described in this joint proxy
statement/prospectus. BellSouth is holding a special meeting of
shareholders in order to obtain shareholder approval of the
merger agreement, as described in this joint proxy
statement/prospectus. |
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We will be unable to complete the merger unless AT&T and
BellSouth shareholders approve these proposals at their
respective special meetings. |
| |
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We have included in this joint proxy statement/prospectus
important information about the merger, the merger agreement and
the special meetings of the shareholders of AT&T and
BellSouth. You should read this information carefully and in its
entirety. We have attached a copy of the merger agreement as
Annex A. The enclosed voting materials allow you to vote
your shares without attending the applicable special meeting.
Your vote is very important and we encourage you to vote your
proxy as soon as possible. |
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Q2: |
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What will I receive in the merger? |
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A2: |
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If the merger is completed, BellSouth shareholders will receive
1.325 AT&T common shares for each BellSouth common share
held immediately prior to the merger. |
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Holders of BellSouth common shares will not receive any
fractional AT&T common shares in the merger. Instead, the
total number of AT&T common shares that each BellSouth
shareholder will receive in the merger will be rounded down to
the nearest whole number, and AT&T will pay cash for the
remaining fractional AT&T common share that a BellSouth
shareholder would otherwise be entitled to receive. The amount
of cash payable for a fractional AT&T common share will be
determined by multiplying the fraction by the average closing
price for an AT&T common share for the five trading days
ending on the trading day immediately prior to the completion of
the merger. |
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AT&T shareholders will continue to hold their AT&T
common shares. |
| |
|
Q3: |
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How do I calculate the value of the merger consideration? |
| |
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A3: |
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BellSouth shareholders will receive merger consideration
consisting of a fixed number of 1.325 AT&T common shares for
each BellSouth common share they own. Based on the closing price
of $27.99 per AT&T common share on the New York Stock
Exchange, which we refer to as the NYSE, on March 3, 2006,
the last trading day before the public announcement of the
merger, the exchange ratio represented approximately
$37.09 per BellSouth common share, a 17.9% premium over the
closing price of BellSouth common shares on the NYSE on
March 3, 2006. Based on the closing price of $26.91 per
share of AT&T common shares on the NYSE on June 1,
2006, the latest practicable date before the printing of this
joint proxy statement/prospectus, the exchange ratio represented
approximately $35.66 per BellSouth common share. |
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| |
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|
Because AT&T will issue a fixed number of AT&T common
shares in exchange for each BellSouth common share, the value of
the merger consideration that BellSouth shareholders will
receive in the merger for each BellSouth common share will
depend on the price per AT&T common share at the |
vii
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|
time the merger is completed. That price will not be known at
the time of the meeting and may be less than the current price
or the price at the time of the meeting. Former BellSouth
shareholders are currently expected to own approximately 38% of
the AT&T common shares outstanding immediately after the
merger. |
| |
|
Q4: |
|
What is required to complete the merger? |
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A4: |
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We are not required to complete the merger unless a number of
conditions are satisfied or waived. These conditions include
receipt of shareholder approvals, receipt of the approval of the
Federal Communications Commission, which we refer to as the FCC,
and other regulatory consents, expiration of the waiting period
under the Hart-Scott-Rodino Act, which we refer to as the
HSR Act, and receipt of legal opinions that the merger will
be treated for federal income tax purposes as a reorganization
within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended, which we refer to as the Code.
For a more complete summary of the conditions that must be
satisfied or waived prior to completion of the merger, see
“The Merger Agreement — Conditions to the
Merger” beginning on page 91. |
|
|
| |
|
Q5: |
|
When and where will the special meetings be held? |
| |
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A5: |
|
The AT&T special meeting is scheduled to be held at
3:00 p.m. Central time, at the Charline McCombs Empire
Theatre, 226 North St. Mary’s Street,
San Antonio, Texas, on July 21, 2006. The BellSouth
special meeting is scheduled to be held at 11:00 a.m.
Eastern time at the Cobb Galleria Centre, 2 Galleria
Parkway, Atlanta, Georgia, on July 21, 2006. |
|
|
| |
|
Q6: |
|
Who is entitled to vote at the AT&T and BellSouth special
meetings? |
| |
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A6: |
|
AT&T has fixed June 1, 2006 as the record date for the
AT&T special meeting. If you were an AT&T shareholder at
the close of business on the record date, you are entitled to
vote on matters that come before the AT&T special meeting.
However, an AT&T shareholder may only vote his or her shares
if he or she is present in person or is represented by proxy at
the AT&T special meeting. |
|
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| |
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|
BellSouth has fixed June 1, 2006 as the record date for the
BellSouth special meeting. If you were a BellSouth shareholder
at the close of business on the record date, you are entitled to
vote on matters that come before the BellSouth special meeting.
However, a BellSouth shareholder may only vote his or her shares
if he or she is present in person or is represented by proxy at
the BellSouth special meeting. |
|
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Q7: |
|
I hold my shares in “street name”. How
are my shares voted? |
| |
|
A7: |
|
If your shares are held in a stock brokerage account or by a
bank or other nominee, you are considered the “beneficial
holder” of the shares held for you in what is known as
“street name.” If this is the case, this joint proxy
statement/ prospectus has been forwarded to you by your
brokerage firm, bank or other nominee, or their agent. As the
beneficial holder, you have the right to direct your broker,
bank or other nominee as to how to vote your shares. If you
do not provide your broker, bank or other nominee with
instructions on how to vote your “street name” shares,
your broker, bank or other nominee will not be permitted to vote
them on either the proposal to authorize the issuance of
AT&T common shares in the merger if you are an AT&T
shareholder or the proposal to approve the merger agreement if
you are a BellSouth shareholder. You should therefore be sure to
provide your broker, bank or other nominee with instructions on
how to vote your shares. |
|
|
|
|
Q8: |
|
How do I vote? |
| |
|
|
|
A8: |
|
If you are entitled to vote at your company’s special
meeting, you can vote in person by completing a ballot at the
special meeting, or you can vote by proxy before the special
meeting. Even if you plan to attend your company’s special
meeting, we encourage you to vote your shares by proxy as soon
as possible. After carefully reading and considering the
information contained in this joint proxy statement/ prospectus,
please submit your proxy by telephone or Internet in accordance
with the instructions set forth on the enclosed proxy card, or
fill out, sign and date the proxy card, and then mail your
signed proxy card in the enclosed envelope as soon as possible
so that your shares may be voted at your company’s special
meeting. For detailed information, please see “Information
About the AT&T Special Meeting — How to Vote”
beginning on page 70 and “Information About the
BellSouth Special Meeting — How to Vote”
beginning on page 73. The vote required to approve
the |
|
|