NEW YORK-Speculation continued last week as to what actions AT&T Corp. and its wireless business, AT&T Wireless Group, would take to boost their lagging stock prices.
AT&T reportedly will discuss how to boost share prices at a board meeting this month. Reports indicate AT&T Wireless may consider a merger with iDEN operator Nextel Communications Inc. or British Telecommunications plc.
AT&T Wireless’ shares have fallen about 14 percent since its initial public offering in April. The carrier’s stock was trading at $25.19 at press time, below its IPO offering price of $29.50 per share.
Analysts attribute AT&T Wireless’ lagging stock price to the fact that AT&T has offered just 15.6 percent of the business and hasn’t indicated when it will issue more shares. AT&T Wireless, which records the largest average revenue per user in the industry, could be worth billions more if the company spun off the business entirely.
Analysts also believe investors are concerned the carrier may become too large a bidder in the C-block re-auction. CEO John Zeglis, however, has tried to assure investors that the company is not in desperate need of spectrum and will bid responsibly.
The government has set the re-auction date of returned C-block spectrum for Dec. 12.
