AT&T Activist Showdown Raises Question: How Much Fat Can Be Cut?
- Elliott sees more than $10 billion that could be eliminated
- AT&T investors and analysts disagree on what’s realistic
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AT&T Inc.’s showdown with activist investor Elliott Management Corp. has put Ma Bell’s operations under a microscope and raised a key question: How bloated is the telecom-and-media giant?
Elliott -- run by the combative billionaire Paul Singer -- thinks the company can cut at least $5 billion annually, and possibly more than $10 billion. The idea is to reduce costs for functions such as finance, human resources and marketing, and close some stores and facilities.