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AT&T to look at proposals
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September 17, 2001: 5:05 p.m. ET
Nation's biggest long-distance phone co. to meet late this week on sale of cable unit
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NEW YORK (CNNfn) - The board of AT&T Corp. still plans to meet later this week and will be looking at more than one proposal to buy its cable assets, a source familiar with the situation told CNNfn.com.
But AT&T's board will not be making a decision regarding the proposals it has received. Instead, staff will be giving a progress report on the conversations and proposals they have received regarding AT&T Broadband.
Last week, New York-based AT&T (T: down $0.13 to $17.52, Research, Estimates) responded to the attack on the World Trade Center by sending all its non-essential staff home and closing all of its buildings. But the WTC destruction will not affect negotiations to sell the cable assets, the source said.
"Nothing is being changed," the source said. "But nothing is imminent."
AT&T's board this week will not be considering any bid from Comcast Corp. In mid-July, AT&T unanimously rejected Comcast's unsolicited $44.5 billion offer for AT&T's cable unit, opening the door to other potential bids.
Comcast has balked at signing a confidentiality agreement required by AT&T, which would prevent Comcast from discussing AT&T's financial information. A condition contained in the agreement prevents an acquirer from attempting a hostile bid if it is rejected. But other parties have signed the agreement, the source said.
AT&T declined to comment.
Earlier this month, CNNfn.com reported that AOL Time Warner had made a proposal to buy AT&T Corp.'s cable business. Such a merger would combine the No. 1 and No. 2 cable operators in the United States, that will serve about 25 million customers, or about a third of the cable market. Shares for AOL, parent of CNNfn, dropped nearly 13 percent Monday.
Cox Communications Inc., the No. 5 U.S. cable operator, may also be preparing a bid. Walt Disney Co. will also reportedly oppose any combination of the cable TV businesses of AOL Time Warner Inc. and AT&T Corp. unless the merged operation sells all of its content holdings.
Burbank, Calif.-based Disney (DIS: down $4.33 to $19.25, Research, Estimates) is looking to invest $4 billion in AT&T Broadband which would also receive funds from Microsoft Corp. AT&T would use the money to keep its cable operations intact and take them public, press reports said.
AOL Time Warner declined to comment. Both Disney and Cox Communications could not be reached for comment. 
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