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 ?
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.
Our focus is on growth in the regulated utility, both in transmission and distribution, and we have the financial flexibility, in the form of cash from our divestitures and access to the debt markets, to execute our plans without modification.
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.
It's going to take an act of God to bring the two sides close enough on a divestiture plan to save this one.
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.
HOUSTON -- Anadarko Petroleum Corporation (NYSE:APC) at its investor conference tomorrow will provide an overview of the company's operating and financial expectations, including detailed reviews of the core properties that are expected to help the company deliver a five-year compound annual production growth rate of between 5 percent and 9 percent, pro forma for anticipated divestitures that are expected to close in 2007.
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.
said the higher divestiture rate will make it less likely the San Francisco-based bank will achieve its earlier target of saving $700 million annually in costs, but the overall effect will be minimal.