By Will Sturgeon, 10 July 2002 08:30
NEWS The continued demise of AT&T looks set to take a further turn with the telco poised to drop out of the Dow Jones Industrial Average. The company, which has been scaling down its operations for the past two years, has been a mainstay on the index of top-performing stocks for the past 63 years, but with the sale of its cable arm to Comcast set to receive shareholder approval and its wireless arm already spun-off, the one time giant of the telecoms sector faces relegation. Once its break-up has been completed, AT&T will be reduced to its core long-distance business - a unit which analysts predict will only be worth around $10bn, or $2 per share (compared to $21.46 12 months ago) - though a one-for-five reverse stock split is planned to boost the value of the shares. According to the Financial Times in its heyday AT&T was the most commonly held stock in the US.
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