AT&T Corp. will issue about 52 million shares of stock to TCI Pacific
Communications Inc. shareholders in order to redeem some 6.2 million shares of
preferred stock owned by TCI Pacific.
TCI Pacific was set up in 1996 as a result of Tele-Communications Inc.'s
purchase of cable systems in San Francisco; Seattle; Nashville, Tenn.; Salem,
Ore.; and Dayton, Ohio, from Viacom Inc.'s cable division. AT&T acquired TCI
Pacific as a result of its purchase of TCI in 1999.
According to a press release, TCI Pacific has the right to redeem its
preferred stock until April 26, and it could have accepted payment in cash or
TCI Pacific shareholders -- which consist mainly of banks and hedge funds --
opted to accept AT&T shares.
AT&T said it will issue up to 52 million shares of its class-A common
stock as a result of the redemption. AT&T shares closed at $15.81 each March
15, making the shares worth more than $822 million.
AT&T currently has about 3.5 billion common shares