AT&T Sees Broadband
Spinoff as Early as Next Week
AT&T said the record date for shareowners eligible to receive a special stock dividend for the spinoff of AT&T Broadband could be as early as Nov. 7.
AT&T shareholders of record on that date will get shares of the new AT&T Comcast Corp., which is being created by the $30.8 billion merger of the AT&T Broadband unit and Comcast Corp. (NasdaqNM:CMCSK - News; NasdaqNM:CMCSA - News) AT&T Comcast will be the No. 1 U.S. cable TV operator, with more than 22 million subscribers.
The spinoff could be completed as early as Nov. 8. Immediately upon spinning off the cable TV unit, AT&T will conduct a reverse stock split for AT&T common shares. That will boost the price of AT&T's common stock by cutting the number of shares outstanding.
AT&T said it could not give any assurances as to the exact date when the AT&T Broadband spinoff and Comcast deal will be completed. The deal remains subject to various closing conditions, and the stock split is subject to action by the AT&T board.
After the cable spinoff, AT&T's remaining operations will provide voice and data services to about 4 million corporate customers and 50 million residential customers. The sale of AT&T Broadband ends AT&T's efforts to create a one-stop shop for telephone, data, wireless and entertainment services.
Shares of AT&T closed at $13.04, down 16 cents, on the New York Stock Exchange.