AT&T Said to Hold Talks With Cerberus on Yellow Pages Sale

AT&T Inc. is in talks to sell a majority stake in its Yellow Pages unit to Cerberus Capital Management LP in a transaction that values the entire business at about $1.5 billion, said two people familiar with the matter.

AT&T would retain a substantial minority stake in the division, and a deal could be reached this month, said the people, who declined to be identified because the negotiations are private. Dallas-based AT&T, which is being advised by Citigroup Inc. and Bank of America Corp., has held talks with several buyout firms on the unit, one of the people said. A final agreement hasn’t been reached and talks could fall apart, the people said.