AT&T (T) Falls on Sale of Landline Business in Connecticut
Shares of multinational telecommunications giant AT&T (T) fell .30 to $33.85, down .88%, on Tuesday on news of the sale of itâ s landline business in Connecticut to Frontier Communications (FTR). Frontier Communications stock rose .38 to $4.78, up 8.64% on the news.
Dallas, Texas based AT&T is the largest provider of both mobile and fixed telephony in the US, and also provides broadband TV services.
It is one of the worldâ s largest mobile telecom operators with well over 100 million mobile customers. In 2012, the company had a net operating income of nearly $13 billion on revenues of $127.4 billion. The stock currently trades at 12.6 forward P/E, and has a dividend yield of 5.32%. The company announced on Tuesday that it would sell itâ s incumbent local exchange operations in Connecticut to Connecticut based Frontier Communications for $2 billion in cash. The transaction includes wireline network assets and consumer, business and wholesale customers. AT&T will retain a major presence in Connecticut, with significant resources providing wireless services on itâ s 4G LTE network, as well as networking, application solutions and professional services for business customers. â
Published on Dec 18, 2013
By Kevin Mercadante