graphic
graphic  
graphic
News > Companies
graphic
AT&T: A $25 stock
Long-distance provider's reverse split gives share price a new look Tuesday.
November 19, 2002: 1:41 PM EST

NEW YORK (CNN/Money) - A one-for-five reverse stock split propelled shares of AT&T to $25 Tuesday as the company returned to its long-distance phone service roots a day after officially shedding its cable assets.

CNN/Money erroneously reported Monday that AT&T shares would trade in the $69-range. That report did not subtract the roughly $8 per share value of AT&T Broadband, which became part of Comcast Corp. after the close of trading Monday.

AT&T (T: Research, Estimates), the first Dow company to boost its share price by cutting the number of shares outstanding, closed at a non-split adjusted $13.51. It opened Tuesday at $25.41 after subtracting the value of its cable assets.

Shareholders of AT&T common stock will receive one share of AT&T stock for every five shares they hold. AT&T anticipates it will have approximately 770 million shares outstanding.

Under the terms of the deal, a shareholder with 100 shares of AT&T on Monday will have about 32 Comcast shares Tuesday and 20 AT&T shares due to the reverse split.

The reverse split comes after the company shed its cable and wireless operations. AT&T's sale of its cable assets to Comcast (CMCSA: Research, Estimates) for $29.2 billion closed Monday. It spun off AT&T Wireless (AWE: Research, Estimates) in an IPO in 2001.

Dow components Johnson & Johnson (JNJ: Research, Estimates) and Exxon Mobil (XOM: Research, Estimates) have split their stocks in recent months. But the reverse split puts AT&T in the company of Palm and Ericsson, former penny stocks which cut their shares outstanding to raise their stocks' price.

After shedding its cable assets, AT&T is now closer to the pure phone company which it was in 1984 before regulators split up the then-monopoly.  Top of page




  More on NEWS
Union oil workers go on strike
Here are the drivers of future economic growth
The shotgun silencer: Not really silent
  TODAY'S TOP STORIES
What will drive future economic growth?
Super Bowl? The Ad Bowl has begun
Get a sneak peek at the ads




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.