AT&T Directors to Mull Disney and AOL TW Cable Overtures

20 September 2001

The board of AT&T Corporation will meet tonight over dinner at its New Jersey headquarters to evaluate options arising from interest in its cable TV assets after the rejection of an unsolicited $40 billion stock-swap offer from Comcast [WAMN: 19-Jul-01].

Convening again tomorrow, the board will consider a merger proposal from AOL Time Warner alongside an existing proposition to spin-off AT&T Broadband in concert with other investors including the Walt Disney Company and Microsoft [WAMN: 10-Sep-01].

However, the prospect of a done deal has yet to rise over the horizon and no conclusive decisions are expected at this week’s meeting. According to AT&T insiders, if no clear way forward emerges in the foreseeable future, the Comcast option may be resuscitated.

News source: Wall Street Journal