AT&T Corp. set the spinoff date for its Liberty Media Group tracking
stock, thus ending a two-year relationship with Liberty chairman John
Malone.
According to a press release, AT&T said the spinoff will occur at 9 a.m.
Aug. 10. AT&T's board of directors voted Monday to redeem each outstanding
share of Liberty Media class-A and class-B tracking stock for one share of
Liberty Media Corp. series-A and series-B common stock.
Following the redemption of the shares, Liberty Media Corp. will become an
independent, publicly traded company listed on the New York Stock Exchange under
the symbol 'LMC.'
AT&T acquired Liberty as part of its $48 billion purchase of
Tele-Communications Inc. in March 1999. The spinoff of Liberty is part of an
overall restructuring of AT&T, which includes the previously announced plan
to split AT&T into four separate parts -- broadband, wireless, consumer
services and business services.
AT&T reiterated that following the Liberty spinoff, Malone will resign
from AT&T's board of directors.
In a prepared statement, AT&T said the spinoff will allow Liberty to
raise capital on its own, to use its stock as a deal currency and to help the
public markets better value the company. It also should eliminate any regulatory
and competitive conflicts of interests between AT&T and
Liberty.
