Activist investor pushes major changes in AT&T [telecom]

CNN reported that Elliott Management, an activist shareholder firm, disclosed Monday that it has taken a $3.2 billion stake in AT&T. Elliott Management wrote that AT&T's stock could surge if the company "increased strategic focus, improved operational efficiency" and "enhanced leadership and oversight."

full detailed article at:

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another article, from the NYT:

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  • * * Personal observation: While I have no love for at&t, I have no love for hedge funds or 'activist investors'. I can't help but suspect they're more interested in quick short term profits at the expense of long term growth. I also can't help but suspect they seek profits by squeezing customers, vendors, and employees.

The 1950s movie, "Executive Suite" just aired on TCM. (It may still be available 'on demand'.) It deals with a debate among the Board about short term profits vs. long term growth and health. While a fictional work and 65 years old, I think it represents some corporate thinking. It's also a good entertaining film.

(The movie opens with the CEO sending a Western Union telegram and it being received by his secretary).

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