AT&T Urged to Focus on Core Biz
CBJ — Activist investor Elliott Management unveiled a $3.2 billion stake in AT&T and wasted no time in urging the giant U.S. telecommunications and media conglomerate to end its acquisition spree and instead focus on improving its core business holdings, some of which could use a boost.
With a market capitalization of $270 billion, AT&T is the target for activist shareholders, along with companies such as Apple and Microsoft.
U.S. President Donald Trump, a frequent critic of U.S. cable news channel CNN, which is owned by AT&T, called Elliott’s announcement “great news.”
The New York-based hedge fund is one of the world’s most successful activists. The plan ranges from divesting certain businesses, eliminating $5 billion in costs, reviewing how it allocates capital and urging CEO Randall Stephenson, who has led the company since the financial crisis, to stop making acquisitions.