July 19, 2001 — (WEB HOST INDUSTRY REVIEW) — AT&T Corp. (att.com) announced Wednesday that, its Board of Directors had unanimously voted to reject a proposal by Comcast Corporation (comcast.com) proposal to acquire AT&T Broadband.
The board says that after careful review, and based in part on the adviceand analysis of its financial advisors, that Comcast’s bid did not reflectthe full value of AT&T Broadband.
The company said that its Board has directed management to explore financialand strategic alternatives relating to AT&T Broadband, and emphasized thatit remains committed to separating AT&T Consumer and AT&T Business from itsbroadband entity.
C. Michael Armstrong, AT&T chairman and CEO, articulated his Board’sconcerns in a publicly released letter to Comcast executives. “Our board ofdirectors today considered your July 8, 2001, proposal toacquire AT&T Broadband and unanimously voted to reject it,” the letter read.”Further, the board is concerned that Comcast’s multi-tier voting structurewould put AT&T shareholders at a disadvantage in matters of corporategovernance.”
