Under the terms being considered, AT&T would maintain a minority stake in Yellow Pages, whose profitability has been slashed by Internet-linked mobile devices and online services. A deal could be reached this month with the New York-based private equity firm.
AT&T CEO Randall Stephenson said in January the Yellow Pages division was a part of the company he was going to obviously take a very hard look at, reported Reuters. In the fourth quarter of last year the Dallas-based company took a writedown of $2.9 billion to reflect the declining value of its directories business.
AT&T's advertising solutions division, which includes the Yellow Pages, contributes just 3 percent of the company's $127 billion in revenue.
The Yellow Pages division of AT&T has struggled to compete with online services in recent years as fewer people use printed phone directories.
Cerberus Capital Management was unavailable for comment, and AT&T declined to comment.
Shares of AT&T fell one cent to $31.00 in after-hours trading.