UPDATE 1-AT&T sees $800 mln Q3 gain from Sterling sale

* SBC had bought Sterling Commerce for $3.9 bln

* AT&T shares up 0.63 pct, IBM shares up 1.37 pct

NEW YORK, Aug 27 (BestGrowthStock) – AT&T Inc (T.N: ) said it expects
a third-quarter pretax gain of $800 million from International
Business Machines Corp’s (IBM.N: ) purchase of Sterling Commerce,
which closed on Friday.

The companies had announced the plan in May for IBM to pay
AT&T about $1.4 billion to buy the unit, which sells software
to financial services, manufacturing and retail companies.

SBC — now part of AT&T — had bought Sterling Commerce for
$3.9 billion at the height of the dotcom boom in 2000.

Sterling’s software and services help companies securely
transfer electronic documents, such as purchase orders, payroll
information, invoices and healthcare claims.

AT&T said the difference between the gain and the deal
prices reflects the value of Sterling Commerce assets on AT&T’s
books. The company said it would reveal the after-tax value of
the deal when it reports third-quarter results.

On New York Stock Exchange, IBM rose $1.62, or 1.3 percent,
to $124.37 and AT&T was up 17 cents at $26.87 at
(Reporting by Sinead Carew; Editing by Richard Chang)

UPDATE 1-AT&T sees $800 mln Q3 gain from Sterling sale