AT&T 's lifesaving plan to quarter the company could be running into problems. The WSJ.com reports that a single large investor in the company and the union representing 35,000 of the company's employees are appealing to other board members to reject the plan.
The AFL-CIO and the Communications Workers of America, in a conference call with institutional investors, said the breakup plan is flawed and will hurt investors in the long run. A spokesperson in the AFL-CIO investment office said the decision to break the company up was prompted by the management's inability to follow its original strategy of selling bundled telecom services. AT&T CEO C. Michael Armstrong has maintained this is what the company had in mind all along.
Those who are petitioning shareholders and board members to vote against the plan have until May to sway them.