|
AT&T sheds Liberty Media
|
 |
August 10, 2001: 1:37 p.m. ET
Spinoff is the latest step in telecom company's restructuring plan
|
NEW YORK (CNNfn) - Liberty Media said Friday it has completed its split from AT&T Corp. and is now operating as a separate, independent, publicly traded company.
AT&T, the No. 1 U.S. telecommunications and cable concern, acquired Liberty, its television programming unit, when it bought Tele-Communications Inc. in March 1999.
In April, New York-based AT&T (T: up $0.09 to $19.67, Research, Estimates) won a favorable tax ruling allowing it to spin off Liberty into a separate company. The split will allow Liberty to raise capital on its own, using its stock to buy, merge or partner with other companies.
Englewood, Colo.-based Liberty Media had been trading as a tracking stock of AT&T. It now trades as an independent company.
Its Class A (LMC.A: Research, Estimates) and Class B (LMC.B: Research, Estimates) common shares are listed on the New York Stock Exchange.
Liberty Media, which is led by former TCI chairman John Malone, who now owns a majority of its stock, has stakes in more than 100 cable channels such as Discovery Channel, E!, and USA Networks. It also has a 92 percent ownership of Liberty Digital, which are its music and online properties.
The company is one of the largest shareholders of News Corp., with an 8 percent stake.
The spinoff of Liberty Media was one element of a broader restructuring plan AT&T unveiled in October as part of an effort to boost its share price. Under that plan, AT&T is dividing its holdings into four publicly-traded companies.
It spun off its AT&T Wireless Services (AWE: Research, Estimates) business on July 9. The company currently is considering alternatives for its AT&T Broadband unit after rejecting a $40 billion takeover offer from cable-television rival Comcast.
As an independent company, Liberty Media will be able to: raise capital on its own; use its stock as currency in acquiring, merging or partnering with other companies; and help the public markets to better value the company, AT&T said.
The split also will eliminate regulatory and competitive conflicts of interest between the two companies.
Earlier this week, Liberty Media said it aims to raise an additional $1 billion through a shelf offering of debt securities, common stock and warrants. 
|
|
|
|
|
 |
|
