Elliott takes $3.2bn stake in AT&T and calls for overhaul
New York — Elliott Management on Monday disclosed a new $3.2bn position in AT&T, taking on one of the US’s biggest and most widely held companies with a plan to boost the telecommunications giant’s share price by more than 50% through asset sales and cost-cutting.
The New York hedge fund, run by billionaire Paul Singer, outlined a four-part plan for the company in a letter to its board on Monday. The proposal calls for the company to explore divesting assets including satellite-TV provider DirecTV, the Mexican wireless operations, pieces of the landline business, and others. It urges AT&T, led by CEO Randall Stephenson, to exit businesses that do not fit its strategy, run a more efficient operation and stop making major acquisitions. Elliott said it would also recommend candidates to add to AT&T’s board.