\tAT&T opened discussions with activist investor Elliott Management on demands for the operator to make sweeping changes to its business, The Wall Street Journal reported.<\/p>\n
The newspaper\u2019s sources stated the companies are assessing a series of requests made in a scathing letter criticising AT&T\u2019s performance and future strategy, made public by the shareholder in September [1].<\/p>\n
In the letter Elliott Management slammed the operator\u2019s acquisition strategy, including its big money purchases of content assets such as Time Warner [2], and demanded a range of changes it said need to be made at the operator to improve its financial and operational performance.<\/p>\n
Among these are cost cutting measures, moving away from further acquisitions, divesting non-core assets and changing the management structure at the helm of the company.<\/p>\n
In the weeks following Elliott\u2019s public criticism of the company, AT&T CEO Randall Stephenson defended its media buys [3] but conceded some of the investor\u2019s points would be \u201clooked at\u201d.<\/p>\n
The proposals have also been slammed by union Communication Workers of America, which called the move a \u201cpredatory approach\u201d that would cost more than 30,000 jobs for short-term shareholder gain.<\/p>\n
Elliott Management\u2019s attempts to force change at AT&T follows the company\u2019s public row with Vivendi over control of Telecom Italia, which appears to be finally subsiding after a period of management and board changes [4] at the operator.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-shareholder-attacks-strategy\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/att-closes-blockbuster-time-warner-deal\/
\n[3] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/att-chief-defends-strategy-in-face-of-investor-unrest\/
\n[4] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/telecom-italia-chair-conti-quits\/<\/p>\n","protected":false},"excerpt":{"rendered":"
AT&T opened discussions with activist investor Elliott Management on demands for the operator to make …<\/p>\n
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