The SBC deal shelved, what tack for AT&T?

Article Abstract:

Talks of a merger between AT&T and SBC Communications have been called off and now the large telecommunications companies must determine their new strategies for functioning in a newly deregulated market. AT&T is having a difficult time maintaining its hold on the long-distance market and it has become necessary for the company to begin competing for market share in the local markets as well. Many experts believe the financial incentive for a merger between the two companies is so strong that they may very well try again. Should a second attempt at a merger fail, AT&T may attempt to merge with a different regional bell company or even GTE. It is estimated that a merger between SBC and AT&T would have added $16 billion dollars to each of companies' market value.

Mergers, acquisitions and divestments, AT&T Inc., SBC, Company Acquisition/Merger

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The question of succession

Article Abstract:

AT&T's CEO Robert E. Allen is faced with managerial problems now that merger talks have been called off with SBC Communications. Had the merger gone through, SBC's Chmn Edward E. Whitacre would likely have taken over the combined company when Allen retired. AT&T's Pres John R. Walter is Allen's heir apparent but the board at AT&T is not necessarily happy with Walter. Walter's strategy for the company has been called into question, as has his commitment to open competition. A $20 million severance package will be awarded to Walter should he not succeed Allen at his retirement, according to his contract. John D. Zeglis is Walter's most prominent rival. Zeglis was recently made vice chairman and played an important role in the merger talks between AT&T and SBC.

Management, Officials and employees, Human resource management, Appointments, resignations and dismissals, Company personnel management, Company executive, Computer executives, Allen, Robert E., Walter, John R.

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