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 ?
Takeda intends to use the proceeds from these divestitures to reduce its debt and accelerate deleveraging toward its target of 2.0x net debt/adjusted EBITDA in the medium term.
Nexstar will have "an attributable interest in television stations reaching 38.2965% of the national audience" following the divestitures.
After tax, proceeds for the divestiture are expected to be $500 million.
Newell Brands Inc (NASDAQ:NWL) disclosed on Friday the divestiture of two businesses, Pure Fishing and Jostens, as it continues to execute on its Accelerated Transformation Plan to create a stronger consumer-focused portfolio of brands.
Fitch's key assumptions for Newell on a combined basis with Jarden at the time of the acquisition, prior to any asset divestitures included: Organic revenue growth rate of 3% annually on a pro-forma basis of $15.5 billion; EBITDA growing to over $3 billion in 2018 from a 2015 pro-forma EBITDA basis of $2.4 billion; and FCF generation of $800 million in 2017 and approaching $1 billion by 2019.
The completion of the divestitures satisfies the remaining contingencies within the previously received regulatory approvals in the US, Europe and China for BD's acquisition of C.
Tom Schaefer and Andy Taurins have joined the Investment Banking Department of Seaport Global Securities ("Seaport") as Managing Directors and Co-Heads of the firm's Acquisitions & Divestitures ("A&D") practice, the company said.
Some analysts agreed, projecting the likely divestitures at around 400.
Dramatically reducing the cap to 40% would yield divestitures of just under 1,000 stores," Kelly explained.
As a result of the 52 slot pair divestitures at DCA required by the DOJ, American will no longer operate year-round, daily nonstop service to 17 destinations from DCA.
This paper focuses on property, plant and equipment (collectively termed as 'asset') divestitures, as the most common asset reduction method (Denis and Shome, 2005).