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AT&T Acts to Lop 1.9 Million Shareholders

October 01, 1985|Associated Press

NEW YORK — American Telephone & Telegraph Co. said today that it will offer the estimated 1.9 million share owners with fewer than 100 shares of AT&T's common stock a chance to sell those shares without paying a sales fee.

The program, under which AT&T will arrange the sale of the stock rather than buy back stock directly, should result in lower record-keeping costs, the company said. The program will run from Oct. 21 through Dec. 17.

AT&T said the small share-owners' holdings amount to about 55 million shares, or about 5% of the company's outstanding total of about 1.06 billion shares.

AT&T spokesman Dick Gray said the company currently estimates that about 10% to 20% of those eligible will participate in the program. If that estimate proves accurate, the company would save about $2 million to $3 million a year in record-keeping costs, he said.

The company said share owners eligible for the program own an average of 29 shares, or a total value of about $600 at the current market price of about $21. The brokerage commission on the sale of that number of shares would normally range from $30 to $40, AT&T said.

The company plans to mail out details of the program to its share owners beginning Oct. 21. Banks and brokerage firms also will be notified. The program will be available from that date until Dec. 17.

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