By Lisa Burroughes, 1 October 1998 18:07
NEWS AT&T has confirmed it is one of the suitors for IBM's Global Data Networking division, valued at $4bn. The statement came from AT&T's boss Richard Roscitt as the two companies announced a $2bn joint contract to provide networking and telecoms for Ohio banking chain, Banc One. However Roscitt said discussions were not yet exclusive and other players such as France Telecom and NTT are still in the running. The acquisition would beef up AT&T's data communication networks for future outsourcing contracts. In the six year deal with Banc One, AT&T Solutions - the networking arm of AT&T - will receive $1.4bn and IBM will receive $420m. It is an extension of a long-term outsourcing agreement worth over $2bn between the three companies. AT&T Solutions will manage the network and transfer the bank's legacy communications network to a single platform based on IP (Internet protocol). As part of the contract the bank will also establish links with local universities to develop a pool of potential IT employees.
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