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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (800)	1/15/2001 12:33:50 AM
From: FR1	Respond to of 24758

It is going to be really interesting to see how things unfold in the immediate future. ATT is digging in to keep its share of TWX (and RR) by selling Liberty. The FCC has decided it was a mistake to give T that option and are trying to force T to sell TWX (not Liberty). The FCC is using the dubious technical argument that T only said they would sell Liberty "if they could get a good tax break" by the deadline in December and that does not qualify as a definitive statement. So they (the FCC) has decided to impose a demand that the sale be of TWX and not Liberty. As a real shocker, the FCC wrote that into the AOL/TWX merger deal. So the real interesting thing is that: "The FCC made AT&T's sale of the Time Warner Entertainment stake a condition of the AOL Time Warner merger approval." I am trying to figure how it is possible for the FCC to tell AOL/TWX that the merger is only OK provided T, over who AOL/TWX has no control, decides to sell its stake in TWX. Add to this the fact that T claims the FCC has no right to demand the sale of TWX because the sale of Liberty was granted as a option. Do you think T and AOL can ignore the FCC demand that T sell its share of TWX? cnnfn.cnn.com AT&T to resist sale? Report: AT&T set to resist federal pressure to sell Time Warner Entertainment stake January 14, 2001: 8:19 p.m. ET NEW YORK (CNNfn) - AT&T is prepared to resist federal pressure for a forced sale of its investment in rival AOL Time Warner's cable television systems, according to a published report. The Financial Times Web site reported Sunday night that AT&T (T: Research, Estimates) executives have remained adamant they are under no obligation to sell its 25 percent stake in the Time Warner Entertainment cable systems unit, despite pressure from the Federal Communications Commission. The stake makes AT&T, the largest U.S. cable operator, a significant investor in the second-largest cable company, the story said. Federal Communications Commission William Kennard last week reiterated the agency's view that AT&T was obliged to shed its stake in Time Warner Entertainment by May, the story said. That would meet a condition of AT&T's acquisition last year of MediaOne, another cable company. AT&T has sought in recent months to sell the Time Warner Entertainment stake voluntarily as part of its efforts to raise cash and reduce its debts, but a forced sale involving a set deadline could undermine its negotiating position and greatly reduce the amount raised from a sale, the Financial Times reported. Kennard's comment came as the FCC approved the AOL's acquisition of Time Warner. The FCC made AT&T's sale of the Time Warner Entertainment stake a condition of the AOL Time Warner merger approval. AOL Time Warner (AOL: Research, Estimates) is the parent company of CNNfn.com. AT&T spokesman Jeff Roberts said Sunday night it was the company's policy not to comment on rumor and speculation. AT&T has sought in recent months to sell the Time Warner Entertainment stake voluntarily as part of its efforts to raise cash and reduce its debts, the Financial Times story said. But a forced sale involving a set deadline could undermine its negotiating position and greatly reduce the amount raised from a sale, the story added. The dispute over the cable investment flared up a month ago, the FT reported. At the time, AT&T said it would only dispose of the Time Warner Entertainment investment by the May deadline if it was unable to complete an alternative condition of the MediaOne deal, to shed its investment in Liberty Media, the story said.