AT&T investors feeling MCI jealous


Looks like all the hubbub over MCI is making AT&T investors a tad envious. As you might remember, the company got a decent buyout offer from SBC, but it really offered no premium for Ma Bell’s stock. Funny, because all this jealousy for WorldCom made old T executives like Mike Armstrong do a whole bunch of things that ultimately became Ma Bell’s undoing. Rob Bartolo, a telecom and media portfolio manager for T. Rowe Price & Associates, which owns about 10.9 million shares of AT&T, told Wall Street Journal that AT&T’s larger size, better scale and superior customer base should have made it more expensive than MCI. “AT&T shareholders are sure to be feeling like they got a little bit of a raw deal on this. They got a lesser price for a little bit of a better asset.” “Verizon could still turn its sights on AT&T if MCI falls through,” Michael Mahoney, portfolio manager at hedge fund company EGM Capital LLC in San Francisco says. Unlikely. Because VZ had made a run at AT&T but was warned by regulators that the deal will not go through.

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