SBC Communications agreed to acquire AT&T for $16 billion, The Wall Street Journal online reported on Sunday.

The newspaper's Web site reported that the deal was completed and that boards of both companies were planning votes Sunday afternoon. SBC's Walt Sharp said he had "no information on anything of that nature. We do not comment on speculation," Sharp told Associated Press.

AT&T's Jim Byrnes said "we consider speculation about mergers, acquisitions, or other business combinations is strictly rumours."

The merger is expected to be announced on Monday, January 31. According to the final deal reached between the two companies on Sunday afternoon, AT&T shareholders will receive about $15 billion in SBC stock and $1 billion in dividend. AT&T CEO David Dorman will become SBC's president, while Edward Whitacre Jr. (see photo above), will remain SBC's chairman and CEO. Dorman will join SBC's board of directors, taking with him only two of his favorite executives to fill the AT&T spots on the SBC board. Both Whitacre and Dorman looked happy and relieved Sunday evening and are ready for the Monday morning press release.

Whitacre and Dorman are expected to appear at CNBC's SquakBox together 8:30 am Monday morning. David Faber of CNBC has been following the story for some time now and more details regarding the merger expected to be announced during the CNBC interview.