Chief of Hughes again emerges as a top candidate to head AT&T

Article Abstract:

AT&T is carefully considering, for the second time, the appointment of Hughes Electronics CEO C. Michael Armstrong as the CEO of AT&T. The company selected Armstrong during the last search for a chief executive to succeed Robert E. Allen. However, Armstrong turned down the offer because Allen did not immediately step down. The choice of Armstrong as a top outside contender for the AT&T job has split the company's directors into two factions. One faction favors Armstrong, while the other supports AT&T's vice chairman, John D. Zeglis. Armstrong comes with longtime experience at IBM in addition to his experience at Hughes Electronics. However, Armstrong presents some financial issues to AT&T because Hughes' parent company, General Motors, has offered him $10 million bonus to stay with the company till 2003. Zeglis has received broad support from AT&T employees, even though his close association with Allen may prove to be a disadvantage to his candidacy.

Appointments, resignations and dismissals, Company executive, Computer executives, Company organization, Armstrong, C. Michael

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AT&T's 3-way split is playing well in Europe; equipment unit given a second look

Article Abstract:

AT&T's Networks System Group CEO Richard A. McGinn uses Telecom '95 to tout the equipment division. After AT&T splits into three companies, the newly independent Networks System Group will be free to compete with equipment makers in the US and abroad. Regional Bell companies and European firms have been reluctant to buy AT&T equipment because the compamies compete with AT&T in offering telephone services. European telecommunications companies may continue to buy from European suppliers, but as competition increases and telecommunications deregulates, the European service providers are pressuring the equipment makers for lower prices. To boost its offerings, AT&T announces a new alternative to copper wire. The technology unites digital methods with a fixed-wireless network and targets Asia and the Middle East. The equipment division earns 25% of its current total revenues of $20 billion from abroad.

Conferences, meetings and seminars, AT&T Network Systems

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AT&T, reversing strategy, announces a plan to split into 3 separate companies: 8,500 jobs to go: new phone unit alone would still rank as No. 12 in the U.S

Article Abstract:

AT&T announces the largest corporate deconstruction in US history as the $101 billion company divides into three units. The telephone unit, with projected sales of $49 billion, will retain the AT&T name. The equipment unit is estimated to have sales of $20 billion, and the computer company will have $8 billion in sales. At least 8,500 employees in the computer area will lose their jobs. The dismantling must be approved by the Justice Dept, but is unlikely to hit any snags. The move allows AT&T to prepare to compete in a deregulated environment. AT&T will move into local telephone service after deregulation. The restructuring should not affect consumers. Stock holders will get stock in the three new companies. The move also reflects AT&T's backing off from computers, an area is which it has lost $500 million. More layoffs of AT&T's 304,500 employees are expected.

American Telephone and Telegraph Co.

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