AT&T-BT alliance faces bevy of rivals; surprise picks win some contracts for corporate networks

Article Abstract:

The proposed Jul 1998 alliance between AT&T and British Telecommunications will pressure other weak alliances, but telecom newcomers also are gaining market share by promising more efficiency. Multinationals already are awarding significant contracts to telecom upstarts, as evidenced by Xerox's choice of Equant over the Global One and Concert alliances. Other companies such as IBM and Equant say their single networks eliminate problems and provide seamless data transmissions for multinational corporations. By comparison, giant telecom alliances have frustrated customers with incompatible phone switches and billing systems. The nontraditional companies also may adapt better to multinationals's telecom needs, which are shifting from voice or data phone links to strengthening productivity. Most alliances still view themselves as established utilities, although BT CEO Sir Peter Bonfield said the new AT&T-BT alliance has changed that position.

Joint ventures, British Telecommunications PLC, Company joint venture

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AT&T officials hang up on some stock

Article Abstract:

Seven top AT and T executives exercised stock options between Oct and Nov 1995, moves that come during a difficult transition period for the telecommunications behemoth. AT and T announced on Sep 20, 1995 that it would break itself into three separate publicly traded companies. Since the announcement, AT and T's stock price has risen dramatically, reaching $67.125 on Dec 5, 1995. The company's revenue increased by only 5.7% in the 3rd qtr, while its income sank 75%. Analysts note that the insider options were likely exercised because the executives wanted to take profits from the rising stock market. An AT and T spokesperson noted that the executives exercised the options during a normal period for such transactions. The seven executives, including AT and T Chmn Robert E. Allen, exercised 281,403 options, of which 189,003 were sold on the open market. The remaining shares were converted by AT and T into cash.

Stock

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Telekom workers to reap stock windfall

Article Abstract:

Deutsche Telekom AG will be privatized in 1996 and the German telephone monopoly is offering an employee stock ownership program (ESOP) designed by Union Bank of Switzerland (UBS) to overcome the typical reluctance of Germans to invest in stocks. The ESOP removes risk from the investment by augmenting employee contributions by five times, freezing the shares for six years and then giving employees the option of recuperating their full, augmented investments at that time if stock values have fallen. If all 250,000 Telekom employees participate, the employees will own 5% of the company's stock. A total of 20% of Telekom, or $6.91 to $10.37 billion, will be privatized. Only 5.4% of Germans own stock, compared with 21.1% of Americans and 18% of Brits. The Telekom/UBS program is only the second ESOP ever in Germany.

Germany, Deutsche Telekom AG, Employee benefits, Employee stock ownership plans

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