Elliott Management Supportive of AT&T Announcement

Elliott Management Supportive of AT&T Announcement

AT&T Announces Portfolio Review, Operational Improvements, Enhanced Capital Allocation, Board Additions and Best Practices in Leadership

Plan will Drive Path to $60 Per Share in Value
NEW YORK–(BUSINESS WIRE)–Elliott Management Corporation (“Elliott”), which manages funds that collectively own $3.4 billion in common stock and economic equivalents of AT&T Inc. (the “Company” or “AT&T”), released a statement supporting the multi-faceted approach to shareholder value creation unveiled by the Company today. The announced measures include:

Significantly enhanced operational efficiency with meaningful margin expansion

Full review of the portfolio and no more major acquisitions

Optimized and shareholder-friendly capital allocation

The addition of two new skilled directors

Clarification of leadership best practices including that upon CEO transition there will be separation of Chairman and CEO roles and an evaluation of all potential CEO candidates

Commitment to 2022 EPS of $4.50 – $4.80 per share

In the statement, Elliott Partner Jesse Cohn and Associate Portfolio Manager Marc Steinberg commended AT&T Chairman and CEO Randall Stephenson, Lead Director Matt Rose and the entire Board and management team on the Company’s commitment to these initiatives:

“We commend AT&T for the positive steps announced today, which will create substantial and enduring shareholder value at one of America’s greatest companies. We have worked closely and collaboratively with management and the Board on the initiatives announced today. It is clear to us that AT&T is committed to and accountable for creating shareholder value over the near- and long-term.

“We have closely evaluated the company’s three-year plan and support the steps toward a faster-growing, more profitable, focused and shareholder-friendly company. The combination of AT&T’s improving business performance, consistent and faster revenue growth, significant margin expansion and enhanced capital return will generate meaningful earnings and cash flow growth over the next three years. In addition, AT&T will continue to refresh its Board as it executes on its plan to realize the $4.50 – $4.80 of EPS by 2022, a figure that is readily achievable and one which excludes the benefit of any portfolio actions. Altogether, we are confident this will yield significant share price upside at AT&T.

“We thank Randall, Matt and the rest of the team for their constructive collaboration and leadership, and we are looking forward to close, ongoing engagement as the Company executes on these strategic, operational and portfolio initiatives.”

About Elliott

Elliott Management Corporation manages two multi-strategy funds which combined have approximately $38 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.
Media:Stephen Spruiell
Elliott Management Corporation
(212) 478-2017
[email protected]


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