AT&T and Cingular are in intensified merger talks, according to The Wall Street Journal. Analyst Gregory Teets says looking at the wireless industry in general, he thinks consolidation would be constructive. But he thinks the mechanics of any AT&T Wireless deal would be difficult to accomplish.
Teets notes Cingular doesn't have stock currency; AT&T Wireless might not want to sell itself after several weak quarters. He also believes that Cingular's parent companies, SBC Communications and BellSouth, would like to keep control of Cingular. He notes that it might be tough for Cingular to offer a premium for AT&T Wireless and still maintain control of the merged entity.
Also, Teets says an acquistion of AT&T Wireless by Deutsche Telecom's T-Mobile would be a cleaner deal, but T-Mobile isn't a public company.