AT&T looking at massive $10 billion offering

Friday, Nov. 26, 1999 | 11:03 a.m.

AT&T rose 3.88 to 57.06 in late-morning trading. Earlier, the stock touched 58, a four-month high. The initial public offering could be the largest-ever in the United States, raising as much as $10 billion.

Chief Executive C. Michael Armstrong has said AT&T is undervalued because investors don't recognize the worth of its faster-growing units. AT&T is moving forward with plans to issue a tracking stock for the wireless business. Selling a portion to the public, rather than distributing it all to shareholders, would let AT&T raise money to fund operations and retain control.

"A tracker for the wireless assets made sense," said Ted Henderson, an analyst at Janco Partners Inc. in Denver, who rates AT&T "accumulate."

archive