BOSTON—American Tower Corp. said it received a subpoena in the rapidly widening probe of stock-option grants that is ensnaring several major wireless players.
The company, which owns and operates more than 22,000 broadcast and wireless communications sites, confirmed it received the subpoena from the U.S. Attorney for the Eastern District of New York requesting documents related to its historical stock-option practices. The news comes just five days after American Tower announced the creation of its own investigative committee in response to a letter of informal inquiry from the Securities and Exchange Commission on the matter.
The company said it intends to cooperate fully with the request, and announced the temporary suspension of a stock buy-back program.
Investors seemed unfazed by the news, however. Shares of American Tower edged upward 53 cents, or 2 percent, to $30.14 per share following the announcement.
The development follows news that Boston Communications Group Inc. is also the subject of an informal inquiry. According to a report in the Wall Street Journal, the prepaid wireless services provider approved stock-option grants to senior executives three times during a five-year span at the lowest possible price for the calendar year.
Other wireless companies under suspicion include Openwave Systems Inc., which said it had received a letter of informal inquiry from the SEC, and Comverse Technology Inc., which has been shaken by an investigation.
Comverse is the subject of a criminal investigation by the U.S. Attorney’s Office, and the company announced a front-office shuffling earlier this month that saw founder and Chief Executive Officer Kobi Alexander step down.
