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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




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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 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.