Elliott Management takes stake in AT&T, what it means for company’s future Description video: CNBC’s Leslie Picker and Julia Boorstin join ‘The Exchange’ to discuss on Elliott Management taking a $3.2 billion stake into AT\u0026T and what it could mean […]
Elliott Management takes stake in AT&T, what it means for company’s future
CNBC’s Leslie Picker and Julia Boorstin join ‘The Exchange’ to discuss on Elliott Management taking a $3.2 billion stake into AT\u0026T and what it could mean for the company’s future.
Elliott Management sees growth prospects for AT&T
Elliott Management Corporation, which manages funds that jointly own shares in AT&T Inc. for 3.2 billion dollars today issued a letter, which sets out considerations regarding the possible growth in the value of the company’s shares. In a letter addressed to the company’s board, it is noted that by the end of 2021, the company’s value will grow to $ 60 per share, which is 65% higher than today’s price..
Over the past decade, the value of AT shares&T yielded to index S&P 500 over 100 percentage points. The decline in stock prices occurred when the AT strategy&The M&A T brought it into many new markets through a series of deals totaling nearly $ 200 billion, and its operating performance declined markedly. As a result, AT&T is greatly underrated today.
Despite this, the company possesses a pool of world-class assets, each with a leading position in the market. The letter notes that this unique conglomerate of leading companies includes a high-performance wireless business, ready for future growth and leadership in the 5G market, and one of the world’s most successful media franchises..
A letter from Elliott Management Corporation outlines a plan that will improve AT’s share price&T and her business. The plan recommends improved strategic focus, operational efficiency, formal capital allocation structure, and enhanced governance and oversight. The letter states that the plan may allow AT&T reach a value of $ 60 per share by the end of 2021 before any strategic portfolio action is taken. In addition to securing a higher share price for its shareholders, both institutional and employees, the letter states that a more focused and efficient AT&T will be strategically beneficial to other stakeholders as well.
The letter concludes with a call for constructive engagement as part of AT’s plan to pursue these open business opportunities.&T.