AT&T results hit by cost of changing marketplace; long-distance rivalries, higher capital outlays cut 3rd-period earnings

Article Abstract:

AT and T's 3rd qtr 1996 profit dropped 11%, due to increasing competition in the long-distance market, the effect of spinoffs and restructuring, and heavy investment to keep up with the changing marketplace. Third qtr income totaled $1.36 billion, compared with $1.53 billion a year ago, with revenue up 2.4%. AT and T has introduced a new consumer calling plan to compete with Sprint and other smaller long distance companies, and is planning improvement in long- distance services and significant expansions in local and wireless services. The spinoff of Lucent Technologies and other restructuring efforts, including the upcoming spinoff of the struggling NCR computer unit, also affected 3rd qtr earnings. Analysts suggest that AT and T's reorganization and capital investments are part of its strategy for future competition with other Bell companies for local and Internet services.

Company sales and earnings, Company earnings/profit

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How clash of egos doomed a global deal; Telecom Italia faces questions on failure of AT&T alliance

Article Abstract:

Telecom Italia's failed alliance with AT&T has raised management questions at the newly-privatized Italian company. Hostilities could ensue at the Jun 16, 1998 meeting between Chmn Gian Mario Rossignolo and shareholders, the first since Rossignolo severed the long-coveted AT&T deal in Apr 1998. Telecom Italia's then-CEO, Tomaso Tommasi di Vignano, and AT&T's then-president, John Walter, reached an international strategy agreement in 1997. That deal unraveled when Rossignolo announced the deal's collapse and secret negotiations with Cable & Wireless at a board meeting. AT&T executives learned of the Telecom Italia change in the news. Insiders link Rossignolo's move as part of his desire to eliminate any traces of Tommasi's leadership, among other reasons. Telecom Italia, the world's sixth-largest carrier, was privatized in Oct 1997.

Planning, Contracts, Contract agreement, Telecom Italia S.p.A., Company business planning

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AT&T issues record $8 billion of bonds, giving a fresh sign of corporates renewed liquidity

Article Abstract:

AT&T Corp. issued $2 bil in 5 year notes at 5.625%; $3 bil of 10 year, at 6%; and $3 bil of 30 year, at 6.5%. The bond offering was set originally for $5 or $6 bil, but moved up to $7 bil earlier this week. By the end, over $16 bil of orders were placed for this offering. Investors seem to be impressed by AT&T's continued reinvention of itself, as it proceeds with the merger with cable television provider Tele-Communications Inc.

United States, Securities issued, listed, Public & Private Debt, Statistics, Securities, Company securities, Credit market, Credit markets, Junk bonds, Treasury market

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