Set in September 1992, this exercise provides teams of students the opportunity to negotiate terms of a merger between McCaw Cellular and AT&T. McCaw was the largest competitor in the rapidly growing cellular-telephone communications industry. AT&T, one of the largest U.S. corporations, was the dominant competitor in long-distance telephone communications in the United States. Prior to the negotiations, AT&T had no position in cellular communications. This case and its companion (F-1142) are designed to allow students to be assigned roles to play. The case may pursue some or all of the following teaching objectives: exercising valuation skills, practicing strategic analysis, exercising bargaining skills, and illustrating practical aspects of mergers and acquisitions.