Activist Investor Elliott Calls for AT&T Shakeup
September 09 2019 - 9:01AM
Dow Jones News
By Drew FitzGerald
Activist investor Elliott Management Corp. disclosed a $3.2
billion stake in AT&T Inc., criticized the company's strategy
and called on the telecommunications giant to shed unnecessary
assets.
The New York fund wrote in a letter to the company released
Monday that it would seek seats on the company's board and
challenged AT&T to sharpen its focus on its core assets,
including its relatively healthy wireless business.
The investment fund didn't ask AT&T to sell specific
divisions but said the company should review any assets that lack a
strategic rationale, including the DirecTV satellite service and
Mexican wireless operations.
Elliott assailed AT&T management for alleged missteps
including the purchase of DirecTV and said it remains cautious
about last year's purchase of Time Warner, a collection of TV and
film businesses including HBO and CNN that was renamed
WarnerMedia.
"AT&T has been an outlier in terms of its M&A strategy,"
Elliott wrote. "Most companies today no longer seek to assemble
conglomerates."
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
September 09, 2019 08:46 ET (12:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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