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News
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No decision on AT&T broadband bids
graphic December 9, 2001: 2:00 p.m. ET

Board seeks more details from suitors and final word could be more than a week away.
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NEW YORK (Reuters) - Telephone and cable television giant AT&T Corp. said on Sunday it had no decision yet on the fate of its cable television unit, and it would continue discussions with all potential suitors.

AT&T said it would "evaluate the potential of all proposals to create long-term shareowner value, but cautioned that there could be no guarantee that it would enter into a transaction for AT&T Broadband." It declined further comment.

The company's board met on Saturday to hear presentations on three bids to acquire the unit, as well as two proposals that would give the company a sizable cash cushion, sources close to the situation said.

AT&T asked the suitors to supply more information about their bids, and will hold discussions this week with each party to discuss the offers in detail, sources said. No decision will be weighed until AT&T has talked with all suitors, and a final verdict may be more than a week away, sources said.

AT&T Broadband, the No. 1 U.S. cable television company, received takeover offers from smaller rivals Comcast Corp (CMCSK: down $0.11 to $39.99, Research, Estimates) and Cox Communications (COX: down $0.71 to $38.99, Research, Estimates)  Inc.

Media giant AOL Time Warner (AOL: down $1.77 to $32.98, Research, Estimates)  Inc. and software titan Microsoft (MSFT: down $0.82 to $67.83, Research, Estimates)  Corp. also submitted a variety of investment bids, sources said.

New York-based AT&T (T: down $0.40 to $17.68, Research, Estimates)  postponed plans to carve out AT&T Broadband as an independent company in July when Comcast offered to purchase the unit in a deal originally valued at $44.5 billion.

AT&T rejected Comcast's offer as inadequate and objected to the proposed voting structure, which would have given Comcast a minority equity stake but a majority voting power in the combined company.

AT&T then fielded proposals from several interested suitors, but cautioned that it may stick with its original restructuring plan.

Barring a very lucrative takeover offer, several AT&T executives and directors favor keeping the cable television unit independent, sources familiar with the situation said.

The company recently named new AT&T Broadband executives who have ties to AT&T board member Amos Hostetter, a proponent of keeping the business independent. The new management team, along with an infusion of cash, could give AT&T a solid argument for rejecting takeover offers and maintaining independence, investors said. graphic





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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
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