x
Optical/IP

The End of AT&T, Part II

4:30 PM -- According to February 1 employee Webcast hosted by AT&T Corp. (NYSE: T) CEO David "The Dorman" Dorman, it would be costly, but AT&T would consider a counteroffer from Verizon:
The answer is, it’s always possible. I don’t expect it. But in these kinds of transactions, because of shareholder litigation and case line to path, our board has to maintain what is known as a fiduciary out, so that if a superior offer came in, they are obligated to at least review it. But at this point, we expect that our agreement with SBC Communications Inc. will be approved by our shareholders and approved by regulators, and we’ll get it done sometime next year… There is a breakup fee if another party were to come in and actually make a superior offer. We’d be obligated to pay SBC 3.5 percent of our enterprise value, which is approximately $560 million plus associated expenses.



— Phil Harvey, News Editor, Light Reading

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