AT&T’s stock price spiked 4.5% to the highest level since January 2018 on Monday morning after Elliott Management — one of the largest activist investors in the world — revealed a $3.2 billion stake in the company.
Elliott said in a letter to AT&T’s board of directors on Monday that it believes the company has a “compelling value-creation opportunity,” and that it expects shares could reach more than $60 by the end of 2021. That would be a roughly 50% increase over current levels.
“There is a great deal at stake in ensuring that AT&T realizes its potential — for shareholders, for consumers, for employees, and even for the US as a global telecom leader,” Elliott said.
The letter proposes a four-part plan dubbed “Activating AT&T” which includes improving the company’s operational efficiency, strategic focus, and applying a capital allocation framework.
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