AT&T to sell stake in leasing business; move may portend fates of other units

Article Abstract:

AT and T announces plans for an initial public offering of about 15 percent of its AT and T Capital Corp subsidiary, which specializes in equipment leasing. AT and T plans to hold onto at least four-fifths of the subsidiary. An actual sale would be determined by 'market conditions' in 1993, AT and T says. Analysts say the move could auger sales of other AT and T units as the company focuses on its core telecommunications business. Nearly one-third of AT and T's $15.5 billion debt load is in AT and T Capital, even though the subsidiary only generated about one-sixtieth of AT and T's $63 billion in revenue for 1991. Credit rating agencies Duff and Phelps, Standard and Poor's Corp and Moody's Investor Service Inc say the planned sell-off will have no affect on the ratings for AT and T's and AT and T Capital's debt.

Electronic computers, Telephone communications, exc. radio, Misc. business credit institutions, T, Securities, Divestiture, American Telephone and Telegraph Co., Divestment, Strategic Planning, Stock, Public Offerings, Subsidiary Company, AT&T Capital Corp.

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McCaw venture has phone pact for airplanes

Article Abstract:

American Airlines replaces its old GTE Corp analog air telephones with digital service from McCaw Cellular Communications Inc joint venture Claircom Communications. The 10-year contract could have a value of $1 billion, and it threatens GTE Airfone's dominance in the market. American contracts with Claircom to install air phones in over 1,200 jet planes. GTE maintains that its dominance is not threatened by McCaw, as it has contracts to install digital phones in the jets of Delta Air Lines as well as United Airlines. American's new air phone system offers lighter, smaller devices and clearer connections. McCaw is working on an enhancement to the system that will provide a port for passengers to connect their laptop computers and transmit data. This is expected to be available in 1994.

Radiotelephone communications, Air transportation, scheduled, Contracts, American Airlines Inc., Market share, MCWA, Airplane Phones, Claircom Communications Inc.

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