Activist hedge fund Elliott Management, which has agitated for major changes at AT&T, has responded favorably to the telecom and media giant’s three-year financial and strategic plan.
The plan, unveiled Monday along with AT&T’s third-quarter earnings, includes several provisions called for by Elliott, which has accumulated a roughly 1% stake in the company.
Elliott Partner Jesse Cohn and Associate Portfolio Manager Marc Steinberg issued a statement commending Stephenson, Lead Director Matt Rose and the entire board and management team. The pair described the plan as the result of “creative collaboration” between Elliott and AT&T.
“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,” the statement said. “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.”
The three-year plan will help AT&T become “a faster-growing, more profitable, focused and shareholder-friendly company,” the statement continued. “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.”
Cohn and Steinberg said the moves will “yield significant share price upside at AT&T.” They said they look forward “to close, ongoing engagement as the company executes on these strategic, operational and portfolio initiatives.”
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