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 switching centers hierarchy made Divestiture possible, because there were clear borders between long distance and local service. Except for those that handled large metropolitan regions, all non-customer facing Class 4 offices remained with AT&T, while all customer-facing Class 5 offices went to the RBOCs. See MCI Decision, Telcordia and Trivestiture.
References in periodicals archive ?
The implications of this study may be useful to shareholders of public-listed companies to determine how companies' characteristics and use of divestiture proceeds can affect their future wealth.
If divestiture is handled properly, the risks to the acquiring and divesting firms are small.
In reviewing the competitive effects of the proposal in the Franklin City banking market and the adequacy of the proposed divestiture, the Board also has taken into account the structure of the market.
After a company has chosen its divestiture strategy, it needs to establish priorities for the process of divesting.
Part II (chapters 3-7) deals with divestiture in an industrialized economy: the United Kingdom.
Based on all the facts of record, including the proposed divestiture in the Milledgeville banking market and the number and size of competitors remaining in the market, the Board concludes that consummation of the proposal would not result in any significantly adverse effects on competition or on the concentration of banking resources in the banking markets in which BB&T and Premier directly compete or in any other relevant banking market.
Before divestiture, AT&T's finance organization focused mainly on the accuracy of data to support external reporting and rate-of-return accounting with the state and Federal regulators.
Approval of the application is specifically conditioned on compliance by Chittenden with all the commitments made in connection with the proposal and with the conditions stated or referred to in this order, including Chittenden's divestiture commitments.