AT&T: shares soar after Elliott discloses stake
(CercleFinance.com) - AT&T shares jumped 5% on Monday, after hedge fund Elliott Management disclosed a large stake in the US telecoms group, saying it saw a "compelling value-creation opportunity" at the phone company.
News of Elliott's 3.2 billion dollar stake in AT&T added more than 40 billion dollars to the company's market value, which now exceeds 273 billion dollars.
The investment was disclosed in a letter to AT&T's board of directors from the fund.
Elliott's letter outlines a four-part plan that is supposed to enable AT&T to achieve a value per share of over 60 dollars by the end of 2021, representing 65% premium on Friday's share price.
Saying that AT&T today is "deeply undervalued," Elliott said its plan recommends increased strategic focus, improved operational efficiency, a formal capital allocation framework, and enhanced leadership.
The shares were up 5% at 38.1 dollars in early morning trading on the NYSE.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
News of Elliott's 3.2 billion dollar stake in AT&T added more than 40 billion dollars to the company's market value, which now exceeds 273 billion dollars.
The investment was disclosed in a letter to AT&T's board of directors from the fund.
Elliott's letter outlines a four-part plan that is supposed to enable AT&T to achieve a value per share of over 60 dollars by the end of 2021, representing 65% premium on Friday's share price.
Saying that AT&T today is "deeply undervalued," Elliott said its plan recommends increased strategic focus, improved operational efficiency, a formal capital allocation framework, and enhanced leadership.
The shares were up 5% at 38.1 dollars in early morning trading on the NYSE.
Copyright (c) 2019 CercleFinance.com. All rights reserved.