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AT&T denies AOL deal
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August 9, 1999: 3:11 p.m. ET
Firm says no proposal under discussion that would break up Excite@Home
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NEW YORK (CNNfn) - AT&T Corp. said the company has no plans to break its ties with Excite@Home and that it has no specific proposal under discussion with America Online Inc.
The company issued a statement midday Monday after the New York Times reported that AT&T (T) and AOL (AOL) officials were considering a deal that would provide AOL with access to AT&T's cable systems.
AT&T sought to defuse such speculation.
"While there have been meetings with America Online in the recent past, there is no specific proposal currently under discussion between AT&T and AOL," AT&T said.
The Times also reported that such a deal could leave Excite@Home (ATHM), which is 58-percent owned by AT&T, out in the cold.
The Times reported that AT&T CEO C. Michael Armstrong suggested the Excite Web portal service should be sold or spun off, with @Home concentrating on delivering high-speed communications links.
But AT&T said in its statement that it will honor its current contract with Excite@Home, including the provision that grants the company exclusive Internet use of AT&T's cable systems. That contract expires in 2002.
"We will continue to work closely with Excite@Home to make all Internet content available over broadband as easily and directly as possible," AT&T said.
The company noted that it "remains open" to any discussions with Internet service providers once its contract with Excite@Home expires. AT&T also added that it anticipates a long-term relationship with Excite@Home.
AT&T shares fell 1-1/16 to 50-5/8 in afternoon trade. AOL shares rose 2 to 86-3/4. Shares of Excite@Home fell 4-1/16 to 38-1/2. 
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