AT&T;, IBM Win Big Service Contracts

AT&T; Corp. and IBM Corp. won contracts valued at about $1.8 billion to manage the telephone and computer networks of Banc One Corp. IBM said it won a separate $2.2-billion, five-year contract from Boeing Co. to manage the aircraft maker’s server computers and provide its telephone and videoconferencing service. AT&T; said its Banc One contract, for $1.4 billion over six years, is its largest ever for managing such a network. IBM will manage Banc One’s mainframes and other large computers in a seven-year contract worth $420 million. Separately, AT&T; confirmed it’s in preliminary talks to buy IBM’s Global Network, which provides access to the Internet and is used by companies to send information worldwide. AT&T; stock fell $1.44 to close at $58.44 and IBM fell $2.94 to close at $128.50. Boeing closed down $1.25 at $34.31 and Banc One declined $1.13 to $42.44. All four trade on the New York Stock Exchange.