It's assigning by reference.
$a = "foo";
$b =& $a; // $b now shares $a's content.
$b = "bar";
echo $a; // "bar"
This is especially useful when moving objects around, because using the regular assignment operator ("=") makes copies and you can find yourself manipulating the wrong instance.
See the [man]references[/man] section in the manual for more info.