A Plodding Ma Bell and her precocious child; AT&T: a bold strategy turns sour
Article Abstract:
AT&T 's chairman Robert E. Allen has turned the running of the company over to COO, John R. Walter. Allen is responsible for the company's three way split, which caused AT&T's stock to drop by 22% while that of its step-child Lucent Technologies soared. Allen defends his decision to split up the telecommunications giant by citing the $32.4 billion AT&T unlocked in shareholder value, Lucent's market capitalization. AT&T's falling stock is a result of the new competition it is receiving from both large and small phone companies luring away customers with the promise of lower phone rates. The company is also having to deal with the deregulation brought about by the Telecommunications Act, which allows the Bells into AT&T's market.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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AT&T and SBC reportedly talk of huge phone merger
Article Abstract:
AT&T and SBC Communications are considering a $50 billion merger that if completed would be the biggest corporate merger in history. Combined the companies would virtually total dominance over both CA and TX with 90 million long distance customers and 30 million local customers. Problems that may have to be overcome are how the combined company would be governed and the financial terms. Legal and regulatory experts believe the government may not grant its approval for fear the merger would stifle local phone market competition. AT&T's stock rose $1.375 to $37.50 when the proposed merger was announced and SBC's rose $.75 to $57.625. The companies have reportedly been considering a merger for over a year.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Without saying 'SBC,' AT&T chairman applauds a Bell deal
Article Abstract:
AT&T Chmn Robert E. Allen confirmed that his company was considering a merger with a regional Bell company, but did not specify which company it was. Allen referred to the merger as a way to increase competition. A combined AT&T-Bell company would have both the expertise and the capital to compete in local markets that other regional Bell's dominated. Analysts are worried that the merger would make AT&T a formidable competitor in local markets and many were confused by Mr. Allen decision to push a deal he has not yet confirmed. Individuals involved in the talks between AT&T and SBC claim Allen's public announcement underscores his determination to arrange a merger between the two companies.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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