AT&T Corp. (T) chairman and CEO C. Michael Armstrong reassured Wall Street that the firm's stock price is solid, stating that the market seems to have given it a vote of confidence in recent weeks.
Speaking on CNN's MoneyLine News Hour with Lou Dobbs, Armstrong also attempted to defend the company's growth strategy in the wake of an ever-changing telecommunications landscape. AT&T's stock price had fallen to a low of about 54 since it announced that it would acquire Telecommunications Inc. (TCOMA) for about $48 billion in stock. Telecommunications CEO John Malone had voiced some concern over AT&T's falling stock price recently, though it
has since recovered. When the deal was announced, the stock hovered around 62.
"The market has a better understanding of where we're going, and its recovered now to 60, and we've used about $60 billion of equity for investment purpose to achieve this growth and yet we've only lost two points, and in some respects, maybe that's a vote of confidence as well," Armstrong said.
Armstrong defended his growth strategy for the company, saying he is working against both tough competition and time, with new markets emerging and demanding services. AT&T entered into a $10 billion global alliance with British Telecommunications, which was announced yesterday.
"Everybody is going global," Armstrong asserted. "There's a lot of competition, and we've gotta show up and give a superior set of services and offerings and support, and we can't wait to do that because the market wants it now."
"While it has taken us nine months to get this far in our strategy, I do believe we're delivering some substance behind that strategy," Armstrong added.
Armstrong did not address issues concerning AT&T's perceived weak spot, which continues to be the Internet. |
