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1.  

   AT&T's reverse stock split

   

   Ken, May 31st, 2002 @ 7:08am

   
   

   How does this reverse stock split increase the value per share? The one inch thick annual meeting publication states, "Pursuant to any reverse stock split, each holder of five shares of AT&T common stock, par value $1.00 per share ("Old AT&T Common Stock"), immediately prior to the effectiveness of the reverse stock split will become the holder of one share of AT&T common stock, par value $1.00 per share ("New AT&T Common Stock") after consummation of the reverse stock split."
   
   As far as I can see, a stockholder is losing value. What am I missing? Will there be an expected stock price increase after the reverse stock split? Is that where we will get increased value?

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2.  

   at&t stock split

   

   dave shilling, May 31st, 2002 @ 11:04am

   
   

   the reason theyare splitting is because once theri deal is finalized, they project their shares to be woth ~4.50 , and they want to keep their heads above water and sty above $10 a share. they justify that by offering some comcast stock instead, but instead of a 1:1 offering it will probably be a 1comcast for every 3 at&t, which means that all of the money lost from the comcast deal goes unaccounted for because only a third of that loss is being compensated for with comcast stock. even though comcast is currently worth more than at&t, it wont be when the reverse takes place. then you'll be stuck with an ever dropping telecom stock and an immediate deficit

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