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AT&T could decide this week
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December 17, 2001: 11:46 a.m. ET
No. 1 U.S. long-distance provider gets new bids, might decide this week.
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NEW YORK (CNN/Money) - The board of AT&T Corp. will meet Wednesday to decide the fate of its cable television business and an announcement could come this week, a source familiar with the situation told CNN/Monday.
New York-based AT&T (T: up $0.89 to $17.02, Research, Estimates) will hold a regularly scheduled board meeting on Wednesday and will discuss the rival bids for its broadband unit. Comcast Corp. and Cox Communications Inc. submitted revised proposals on Sunday, sources following the situation said.
AOL Time Warner has also boosted its offer and submitted a separate reworked proposal for AT&T's 25 percent stake in Time Warner Entertainment, press reports said. AOL (AOL: up $0.57 to $33.55, Research, Estimates) is the parent of CNN/Money.
Microsoft Corp., in an attempt to block AOL, is offering financial support to both Cox (COX: up $0.18 to $38.80, Research, Estimates) and Comcast (CMCSK: up $0.41 to $39.05, Research, Estimates) and is even offering a $4 billion to $5 billion investment to AT&T if it chooses to keep the unit independent.
AT&T could make a decision this week — to sell or keep the unit independent -- or it could decide to hold off. Either way, the nation's largest phone provider will issue a statement Wednesday, likely later in the day, a source said.
"Anything is possible," the person said. "Don't rule out a possibility of an announcement this week."
Shares of AT&T surged nearly 6 percent Monday, AOL gained nearly 2 percent, Cox and Comcast gained marginally and Microsoft added more than 2 percent.
But many do not expect AT&T to come to a firm determination this week. "There has just not been a real sense of urgency from the bidders," a source said.
If AT&T chooses to sell the unit, it will need time to craft a story for investors, said analyst Lara Warner of Lehman Brothers. If AT&T decides to keep the unit, then the nation's largest long-distance phone service provider will need time to prepare, she said.
"AT&T is still trying to decide, but if it means the difference between a good or a great bid then it won't hesitate to take the extra two weeks," she said.
Last summer, AT&T pushed plans aside for an IPO of the broadband unit when Comcast made its unsolicited offer for the cable unit. In early November, AT&T CEO Mike Armstrong told CNN/Money that the company had yet to decide whether to sell its cable TV business or float an IPO.
But AT&T is expected to finally decide and make an announcement by Jan. 7 when CEO Armstrong is slated to speak at Salomon Smith Barney's media and telecom conference in Scottsdale, Ariz.
AT&T has repeatedly said it plans to make a decision by the end of the year. If AT&T decides to keep the broadband business, many expect Comcast to launch a rival bid. However, Armstrong is seen leaning toward Cox because that company's strategy is more in line with Armstrong's, a trader said.
"He likes Cox because they are the only other ones who have made substantial advances in telephone-by-cable," a trader said.
The Cox offer is also seen giving Armstrong a role in the combined companies.
Comcast and Cox declined comment. AT&T and Microsoft (MSFT: up $1.54 to $68.98, Research, Estimates) also both declined comment. 
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