SBC to Sell Yellow Pages Stake to Donnelly

SBC Communications Inc. agreed to sell its stake in a Yellow Pages business in Illinois and northwest Indiana to R.H. Donnelley Corp. for $1.45 billion.

Donnelley will buy SBC’s share of a joint venture between the two companies that publishes 129 directories in the two states, SBC said. SBC said it would record an $850-million gain from the sale this quarter, when it expected the transaction to close.

San Antonio-based SBC is raising funds to pay for its portion of a $41-billion joint bid for AT&T; Wireless Services Inc. with BellSouth Corp.

SBC shares rose 6 cents to $25.40 before the announcement. Shares of Purchase, N.Y.-based R.H. Donnelley fell 54 cents to $41.11. Both trade on the NYSE.

From Bloomberg News

* Federal Communications Commission Chairman Michael K. Powell backed off a plan that could have led to higher prices for some prepaid calling cards after complaints from the U.S. military, which relies heavily on the cards, sources said.