Merger will probably mean large AT&T layoffs, analysts say.(The Dallas Morning News)

Byline: Terry Maxon and Vikas Bajaj

DALLAS _ Having convinced each other it was a good deal, SBC Communications Inc. and AT&T Corp. spent Monday selling their merger to investors and regulators.

SBC told investors its $16 billion acquisition of AT&T would bring the combined company $2 billion a year in "synergies" by 2008. To regulators, it said the merger would drive innovation and save an American icon.

SBC Chairman and Chief Executive Edward Whitacre reached for the heartstrings of those who remember the Bell System's glory days.

"It gives me a great pleasure to say to AT&T employees and shareholders, welcome home," he said. "And welcome to the future. We can't wait to get going."

In this case, "synergies" probably means many layoffs, although SBC won't offer details until Tuesday. Most of the $2 billion will come from cost savings, while only $100 million to $200 million annually would come from extra revenues.

AT&T personnel will probably take the brunt of the job reductions, said Danny Briere, an industry consultant. "SBC bought someone that was declining. I would imagine a lot of AT&T people have their resumes on the street today."