At&T Presses Fcc On Twe Sale

Frustrated by dint of its failed talks with Time Warner (TW) AT&T is seeking either regulatory relief or help in shedding its 255% stake in Time Warner Entertainment (TWE). AT&T, which is weighing TWE sale as individual of 3 options for complying with FCC's conditions upon MSO's earlier purchase of MediaOne clump is quietly lobbying Commission for assistance as its deadline for choosing option approaches in 2 month In ex parte filings with agency released Oct 10 AT&T Exec Vp-Gen consultation James Cicconi disclosed that he spoke upon phone twice recently with Kathryn Brown chief of staff to FCC Chmn Kennard, to discuss his company's bootless efforts to sell its TWE interest back to TW Cicconi also warned that AT&T might not be able to vend its TWE stake to public before Commission's May 19 2001 deadline for coming into compliance and hinted that regulators might have to pace in. "In the absence of a negotiated arrangement between the parties, which appears unlikely, the sole alternatives to the uncertainties created by means of the registration rights process would be an obligation upon both parties to ensure the fair and timely termination of the partnership," Cicconi wrote

propel came as lawmakers and regulators weighed imposing conditions upon pending AOL acquisition of TW that would force combined company to part its ties with AT&T, nation's leading MSO In latest action, Senate Judiciary Committee Chmn Hatch (R- Utah) wrote FTC Chmn Pitofsky late last month urging his agency to analyze "the potential for anticompetitive conduct" in ownership links between AT&T and TW "I respectfully ask that the Commission carefully consider whether a fair and expeditious resolution of the TWE partnership between AT&T and Time Warner would be in the best interest of competition and consumer in light of the propos AOL-Time Warner merger" Hatch wrote "This would render certain that consumers benefit from the robust competition that will ensue once these two companies' shared economic and operating incentives are separated."

AT&T's propel also came as AOL and TW officials stoutly shielded TW's links to AT&T and fighted that regulators should not intervene. In novel 13-page letter to FCC, companies argued they shouldn't have to divide ties with AT&T because regulators already had addressed issue in MediaOne transaction. They also said AOL-TW deal wouldn't change those ownership interests because there were no links between AOL and AT&T. "This merger creates no of recent origin AT&T link to Time Warner, and the addition of AOL does nothing to affect the preexisting -- and FCC-approved -- AT&T ownership interests in TWE," alphabetic character stressed (TVD Oct 9 p2)

AT&T executives declined last week to say a great quantity [i]or[/i] amount of more about their lobbying efforts. "We recognize that the addition of AOL to the cable partnership raises regulatory concerns" AT&T official said. "The FCC discussions and the Hatch alphabetic character are byproducts of that concern" TW spokesman said simply that "our conversations with AT&T are ongoing."

However, industry bystanders said AT&T's lobbying drive clearly was attempt to boost its leverage in flagging negotiations with TW and to win higher price for its TWE stake. Thanks to TW's having cutting side in bargaining because it doesn't ne to purchase back stake, they said, companies have remained as plenteous as $16 billion apart in price, with AT&T reportedly seeking as plenteous as $20 billion and TW offering as little as $4 billion. Analysts have valued stake at about $12 billion. "Inertia's not getting it done," Precursor collection CEO Scott Cleland said.

Analysts said TWE's sales price was particularly lock opener right now because AT&T, plagued by dint of faltering share price, could use cash infusion to divide [i]or[/i] sever its debt load and boost its stock's spectacles On other hand, purchase of TWE stake potentially might force TW to add debit hurting its stock. "TWE is dead cash for AT&T," Cleland said, noting that MSO had no management rule over stake. But, he said, "AOL-Time Warner likes the use of AT&T's cash with no exit."

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