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.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now