AT&T Corp. announced new executives to head the three companies resulting from the split of AT&T announced a month ago by Chairman and Chief Executive Officer Robert Allen.
Allen will continue in his posts at the new AT&T and Alex Mandl, currently president and CEO of AT&T’s Communications Services Group, will serve as president and chief operating officer of the new services company. Mandl is overseeing the transition from the current AT&T to the new business.
The chairman and CEO-designate of the communications systems and technology company is Henry Schacht, currently a senior adviser to E.M. Warburg-Pincus and previously chairman and CEO of Cummins Engine Company Inc.
Richard McGinn, now CEO of AT&T Network Systems Inc., was named president of the communications systems and technology spinoff. He is managing the transition to that new company.
Mandl will take his new seat Jan. 1, 1997, said AT&T, when restructuring is expected to be completed. Schacht and McGinn will assume their new positions early next year, said the company, in accordance with the scheduled initial public offering of 15 percent of the new systems and equipment company’s shares.
Lars Nyberg previously was appointed to oversee AT&T’s Global Information Solutions computer company. Formerly NCR Corp., GIS will operate again as an independent company with Nyberg as its CEO. Once AT&T’s restructuring is completed, Nyberg is expected to become chairman of the board for the computer company.
The new AT&T will focus on communications services, including long-distance, paging, two-way messaging, cellular and personal communications services. The systems and technology company will include the current Network Systems company and the bulk of the Bell Laboratories research team. The new companies will be publicly traded and current AT&T shareholders will hold stock in all three, the proportions based on each company’s market valuation. What will comprise the new AT&T was responsible for $49 billion of the company’s 1994 revenue; the systems and technology company contributed $20 billion; and GIS added $8 billion.
