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US: Elliott takes $3.2B stake in AT&T and questions merger

 |  September 9, 2019

Activist investor Elliott Management has taken a US$3.2 billion stake in AT&T, one of its largest-ever positions, and is pushing for a strategic overhaul at the US telecoms group, which it claims has been a “disappointing investment for shareholders,” reported Wall Street Journal.

Paul Singer’s US$38 billion hedge fund has taken aim at AT&T’s merger strategy, including its US$80 billion takeover of Time Warner, stating the US telecoms group has embarked on a “questionable” acquisition strategy.

The New York hedge fund wrote in a letter to the company released Monday, September 9, 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 fund didn’t ask AT&T to sell specific divisions, but stated the company should review any assets that lack a strategic rationale, including the DirecTV satellite service and Mexican wireless operations, reported the Jornal.

Full Content: Wall Street Journal

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