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 this study, we focus on an important subset of portfolio restructuring activities: namely, asset divesture and asset expansion restructuring.
Rhodia added that the operation forms part of the divesture of non-strategic activities being pursued by the group, which wants to consolidate its business portfolio.
This decision comes in conjunction with International Paper's previously announced $3 billion divesture program to sell assets.
If completed in 1998, the MedCenters sale would be the second large divesture by UniHealth in two years.
In its concerted effort to reduce credit risks, General Electric Company (NYSE: GE Free Report) is planning to shrink its finance business by 2015 through the divesture of its North American consumer lending unit.
The divesture means Foremost, which is one of the largest co-operatives in the US, will focus on its butter, cheese and dairy ingredients segments.
received $300 million in cash, a $25 million subordinated note and preferred stock in the sale of its Aluminum Products segment, a divesture it has been planning since November 2007.
The ratings reflect the planned divesture of the healthcare business.
In its complaint and related public statements to the media and investors, Eastman contends that recent changes made by Westlake to the pipeline tariff and the terms and conditions of the pipeline usage, cost and service, were made to delay the divesture of some of Eastman's ethylene cracking units and would also impact its production capacity in Longview, Texas.
Under a program called "Plan to Win," Metaldyne has performed a product review and determined that the divesture of some of its automotive manufacturers, including metalcasters, will streamline its cost structure and improve overall performance.
Our divesture of Berkshire Mortgage is consistent with our long-term strategy of creating new businesses, growing those business to be market leaders and creating significant value for our equity holders," said Douglas Krupp, chairman of The Berkshire Group.
TRI expects the divesture to be completed before the end of the year.