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Today's report from Web Editor
Susan Rush
• AOL-TW: The Vote Looms
• AT&T Plans Asset Sale
• Lucent Streamlines
• It's A Restructuring Free For All
• Broadband Briefs
AOL-TW: The Vote Looms Unlike
the United States presidential election, the state of Florida may not decide
the fate of the America Online and Time
Warner merger, but the vote could be a fight to the finish nonetheless.
The Federal Trade Commission is reportedly
looking for more access concessions from the duo before casting its vote
tomorrow to approve or block the $147 billion deal, according to circulating
media reports.
In a settlement draft, it looks like the FTC wants to keep
the competitive edge in cable access by insisting that Time Warner open its
cable lines to at least three competitors within 90 days of the completed
merger. Further restrictions imposed on the deal could include TW's promise
to sign one of these rivals before AOL is allowed to offer service over its
cable lines.
AOL declined to comment. And with the vote looming, the FTC
did not return BroadbandWeek Direct's calls for comment before
deadline. The European Commission
already approved the deal last month, and the FCC
is reserving its ruling until after the FTC vote.
Related Stories:
Time
Marches On, Broadband Week, 11//00
On
The Run, Broadband Week, 11//00
AOL-TW:
Access Remains An Issue At FTC, BroadbandWeek Direct, 10/16//00
AT&T Plans Asset Sale
Amidst company spin-offs, earnings drop offs and a $62
billion debt load, AT&T Corp. is
planning to sell some of its nonstrategic assets over the next few months. The
telecommunications giant is looking to cut its debt by about $25 billion,
according to industry analysts. Yesterday, Standard
& Poor's slashed its short-term and long-term credit ratings for the
company.
Although AT&T has no comment on the specific nonstrategic
assets that are currently under consideration, the company is confident
about its financial future. "We have taken decisive actions to fundamentally strengthen
our financial position, and it continues to be solid," says David
Caouette, an AT&T spokesman. "In addition to the non-strategic divesture
of assets, proceeds from the expected IPO of AT&T Broadband next
year are expected. We believe that our long-term strategy and strong financials enhance the
long-term prospects of our debt and equity shareholders."
AT&T shares were trading at $22.06 during the morning
hours. Despite the fact that AT&T has been trying to find a way to
revitalize itself, the company's stock price remains in the cellar, and is a
far cry from its 52-week high of $61.00.
Related Stories:
AT&T
Borrows $25 Billion To Pay Debt, Wireless Week, 10/31/00
AT&T:
Split Personalities; Earnings Drop Off, BroadbandWeek Direct, 10/25/00
Lucent Streamlines
Days after being named interim chairman and CEO of Lucent
Technologies last month, Henry Schacht announced plans to cut jobs to
bring profitability back to the company. Well, the ax has begun to fall and
analysts are predicting that as much as 10 percent of the Lucent workforce
could be out of a job.
"I have no reason to believe [the cuts] will be at that
level," says Mary Ward, a Lucent spokeswoman. The job cuts are a result
of Lucent's plan to trim the fat, so to speak, and regroup after having to
cut earnings targets. Lucent stock was trading at $24.19 at 11:52 p.m. EST.
The company hopes to cut as many jobs as possible by
attrition, with the majority of the cuts hitting administrative positions.
Lucent has announced about 240 job cuts this month.
Related Stories:
Lucent
Drops, But Beats Expectations, BroadbandWeek Direct, 10/24/00
Lucent
Boots McGinn, BroadbandWeek Direct, 10/23/00
It's A Restructuring Free For All
Following in the footsteps of AT&T and WorldCom, British
Telecommunications is reportedly considering breaking up its operations.
Eroding profits and increasing debt has caused the company's stock price to
fall 49 percent this year. At 11:48 a.m. EST, BT's stock price was trading
at $114.38, well off its 52-week high of $245.
The company is expected to announce a restructuring plan
tomorrow that will include separating its fixed-line operations, a public
offering of its wireless business shares, and an eventual spin-off of its
Internet unit, according to The Wall Street Journal. BT could not be
reached for comment.
BT has been battling European regulators and competitors over
its local loop access. The company may be forced to open its access to
rivals as early as January 1. The European Parliament has put legislation on
the "fast-track" to appease various European carriers.
Related Stories:
WorldCom
Jumps On The Restructure Wagon, BroadbandWeek Direct, 11/01/00
AT&T:
Split Personalities; Earnings Drop Off, BroadbandWeek Direct, 10/25/00
BT
Says, "Talks On", BroadbandWeek Direct, 10/18/00
Broadband Briefs:
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