Divestiture

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Divestiture

The breakup of AT&T (American Telephone & Telegraph Corporation), the largest company in the U.S. prior to 1984. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). Bell Labs was renamed AT&T Bell Labs, and its Western Electric manufacturing division became AT&T Technologies.

The demarcation point of the split was the Class 4 switching center. Except for those that handled large metropolitan regions, all Class 4 offices remained with AT&T, and all Class 5 offices went to the RBOCs. It was the switching office class hierarchy within the Bell system that made Divestiture possible, because there were clear borders between long distance and local service. See Class 4 switch, Bellcore and Trivestiture.
References in periodicals archive ?
In general however, divestitures tend to receive minimal academic attention as compared to mergers even though both events involve transfers of ownership and control of corporate assets (Gadad et al.
Consummation of the proposal without divestitures would be consistent with Board precedent and within the thresholds in the DOJ Guidelines in eighteen banking markets.
But as divestitures carve a greater niche in the market landscape, companies are learning that, contrary to prevailing wisdom, divesting presents challenges not only to the buyer but to the seller, as well.
Lockheed said in a statement that the Justice Department had given it until Monday to respond to the government's demand for divestitures of key defense businesses, including the production of radar systems and electronic countermeasures, which enable pilots to evade incoming missiles.
5 billion and immediately initiated efforts to transform the combined portfolio and reduce debt by $15 billion, primarily through asset divestitures.
Competitive Analysis in Salt Lake City and Other Banking Markets with Divestitures
Shilkret said that while the branch divestitures are required by the Department of Justice and state Attorney General's Office to eliminate antitrust concerns, Wells plans additional branch closures to cut costs.
Divestiture Furthers Focus on Core Business Development
12) After accounting for the proposed divestitures, consummation of the proposal would be consistent with Board precedent and the DOJ Guidelines in six of the Vermont banking markets: Bennington, Brattleboro, Middlebury, Rutland, Springfield, and Vergennes.
Hackett said Anadarko is conducting a thorough review of the consolidated assets to select divestiture candidates, with the dual goals of paring acquisition-related debt and optimizing the portfolio.
The divestitures will be required only if the merger closes.
Coupled with the divestitures of European Seafood, HAK(TM) vegetables, and the HP Foods Ethnic business, and the acquisition of the Petrosoyuz sauces businesses in Russia, Heinz is better positioned for stronger growth and higher gross margins in Europe.