AT and T mulls split into four parts

Published October 23rd, 2000 - 02:00 GMT

US telecommunications giant AT and T will consider a plan on Monday to divide the company into four parts, allowing it to become more responsive and nimble in the ever-changing industry, the New York Times reported. 

 

The proposed split is a bid by the company, the largest US long-distance phone and cable television provider, to shore up faltering shares which are trading at around half their price of a year ago. 

 

Under the proposal, AT and T's wireless unit and cable television operation would each be spun off as an independent company within the next two years, the Times reported. 

 

The company would also issue a new class of stock to track its struggling retail long-distance operation. 

The move, if approved by the board, would represent the second time the company has voluntarily revamped its structure since a 1984 government-mandated breakup of the Bell phone system. 

 

AT and T could announce the moves as early as Wednesday according to the Times, when the company is scheduled to publish quarterly financial results. — (AFP)  

 

© Agence France Presse 2000  

 

 

© 2000 Mena Report (www.menareport.com)

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