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 ?
Since divestitures are commonly executed by companies attempting to enhance shareholder wealth, it is important to determine the association between divestitures and post-divestiture performance.
14) After consummation, and accounting for the proposed divestitures, concentration in the Sussex and Surry banking markets would not increase, and the increases in concentration in the Farmville, Tazewell, and Roanoke (as redefined) banking markets would not exceed the threshold levels in the DOJ Guidelines.
The research indicates that successful divestitures are a product of well-conceived and thorough planning and preparation.
The most recent offer of divestitures was double the size of the companies' first proposal.
6 million was realized in 2006, from the losses associated with the divestiture of Xcelecom will help fund the capital program.
22) After accounting for the proposed divestitures, consummation of the proposal would be consistent with Board precedent and the Department of Justice Merger Guidelines ("DOJ Guidelines")(23) in at least 16 of the 21 markets: Bonners Ferry, Burley, Montpelier, and Twin Falls, Idaho; and Box Elder, Cedar City, Delta, Ephraim, Logan, Moab, Monticello, Park City, Price, Richfield, Roosevelt, and Vernal, Utah.
The divestitures represent 11 percent of First Interstate's California deposits, but only 5 percent of the combined companies' (deposits)," he said.
Adjusting for the larger than originally planned divestitures, the pro forma proved reserves of the new Anadarko will be about 2.
Albany banking markets would exceed the DOJ Guidelines after accounting for the proposed divestitures.
Shield Corporate Finance, the international divestiture specialists, served as financial advisor to UCI on the transaction.
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.
Following the divestitures required by DOJ, the combined company will have less fossil generation in the PJM East region than PSEG has today.