AT&T Corp. exercised its put rights for 24.3 million membership units of
a subsidiary of Charter Communications Inc. -- a deal that could net the phone
giant nearly $700 million.
According to a Securities and Exchange Commission filing Friday, Charter said
AT&T informed the MSO April 12 that it would exercise the put rights. The
closing is to be held April 14, 2003. The document said the parties could reach
an alternative settlement before then.
AT&T had the right to put the membership units to Charter chairman Paul
Allen at $28.26, including interest. At that price -- more than three times
Charter's April 12 closing stock price of $9.04 -- AT&T would receive $686.7
Also in the document, Allen said he had increased his holdings in Charter to
55.4 percent of its outstanding stock as a result of put agreements associated
with its 1999 acquisition of Falcon Communications Inc.
Allen now has 350.9 million Charter shares.