hopefully, yes, but, it'll be a while before know for sure at least. I just want to hear the word LUCENT tomorrow!
below is from bloomberg.com
enter ticker T and select news
AT&T Gains MediaOne Approval to
Issue Wireless Tracking Stock
AT&T Gains MediaOne Approval to Issue Wireless Tracking Stock
Englewood, Colorado, Dec. 5 (Bloomberg) -- AT&T Corp., the
largest U.S. phone company, received approval from MediaOne Group
Inc., the cable-television company it's acquiring, to issue a
tracking stock that could value its wireless operations at $70
billion, people familiar with situation said.
The plan to sell 10 to 15 percent of the wireless unit could
raise $7 billion to $10 billion in what would be the largest
initial public offering, they said. The move is intended to boost
AT&T stock, which so far this year has lagged Standard & Poor's
index of 500 large stocks and S&P's telecommunications index.
MediaOne had to approve any changes in AT&T's common shares
occurring prior to the close of their transaction, expected by
mid-2000. The tracking stock, which has yet to gain approval of
the AT&T board, could be issued around May, one person said.
AT&T is expected to unveil plans on the tracking shares and
give details about how spending to improve its cable-television
networks will affect profit at an analysts' briefing tomorrow.
Both companies declined to comment.
Tracking stocks have risen in popularity as phone companies
move into emerging businesses, such as wireless and the delivery
of voice and data services through cable-television networks.
AT&T's wireless operations provided $1.42 billion in
revenue, or about 10 percent of the company's total revenue, in
the quarter that ended Sept. 30.
Greater Valuations
Although the large amount of capital needed to build
wireless networks is usually a drain on earnings, investors have
given wireless stocks greater valuations than traditional phone
companies since they are associated with faster growth. The
tracking shares of Sprint Corp.'s wireless unit have outpaced
growth in the parent company's stock by more than 4-to-1 this
year.
Selling a portion of its wireless unit to the public, rather
than distributing it all to shareholders, would let AT&T raise
money to fund operations and retain control. It would also let
the company invest more in advanced wireless technology and
network expansion, without concern about dilution.
Shares of the wireless business will likely be distributed
to existing AT&T shareholders in the fall, the people said. AT&T
followed a similar pattern when it spun off Lucent Technologies
Inc. in 1996, selling shares in an IPO in April and then
distributing shares to existing holders in September. |
