AT&T Corp. named Frank Herringer, chairman of Transamerica Corp., and
Tony White, chairman, president and CEO of Applera Corp., to its board of
directors, bringing the total number up to 15.
'Both men bring a wealth of business experience and insight,' AT&T
chairman C. Michael Armstrong said in a prepared statement. 'We're very pleased
that they are joining us at this time.'
Adding the new board members is indirectly related to AT&T Broadband's
pending merger with Comcast Corp.
According to the Comcast deal, the new AT&T Comcast would have 12 board
members -- five from AT&T, five from Comcast and two outside members. Since
AT&T's bylaws require the company to have a minimum of 10 board members, it
needed to sign on more.
It is also likely that AT&T will sign on additional members to the board
prior to the closing of the Comcast merger, expected next year.
In an unrelated move, AT&T also said it would ask shareholders to approve
a one-for-five reverse stock split after the Comcast merger is completed.
The move is largely a psychological one in that the value of each
shareholder's holdings wouldn't change -- just the face value of their stock
once the AT&T Broadband assets are split out.
Most analysts estimated that AT&T's phone business -- the entity that
would remain after the Comcast merger -- is worth about $5 per share. By doing
the reverse split, those shares would increase in value to about $25