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AT&T likely to keep Time
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October 10, 2000: 7:31 p.m. ET
AT&T says quick divestiture of Time Warner Entertainment stake unlikely
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NEW YORK (CNNfn) - As U.S. regulatory officials continue to scrutinize the proposed AOL-Time Warner merger, AT&T Corp. said in a letter it is unlikely to divest its stake in Time Warner Entertainment, which would further allay regulatory concerns.
In a letter sent Oct. 4 and made available Tuesday, AT&T (T: Research, Estimates) told the FCC without a change in its partnership agreement with Time Warner it could not dispose of its 25.5 percent stake.
 There are worries in the AOL-Time Warner camp that Senate Judiciary Chairman Orrin Hatch, R-Utah, is concerned AT&T's stake in Time Warner's cable and entertainment business might stymie competition.
European regulators are expected to announce a decision on the merger Wednesday.
"In the absence of a negotiated settlement between the parties which appears unlikely, the only alternative to the uncertainties created by the registration rights process would be an obligation on both parties to ensure the fair and timely termination of the partnership," AT&T wrote.
AT&T said a "registration rights process" could see full disposal of the stake after May 19, 2001, but did not explain further.
The company did not comment on the letter, other than to say it is aware of regulatory concerns.
A Time Warner (TWX: Research, Estimates) spokesman said talks are ongoing. Time Warner is the parent company of CNNfn.
Shares of AT&T rose 19 cents to $26.74, while AOL (AOL: Research, Estimates) rose 14 cents to $57.24. Shares of Time Warner, the parent company of CNNfn, rose 60 cents to $85.10. 
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