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MediaOne to OK AT&T; Tracking Stock

Bloomberg News

MediaOne Group Inc., the cable-television company being acquired by AT&T; Corp., is expected to approve a plan this week that will clear the way for AT&T; to sell a stake in its wireless business to the public, people familiar with the companies said. MediaOne must approve any changes in AT&T;'s common shares prior to the close of their transaction. AT&T; is considering selling 10% to 15% of its wireless business to raise about $7 billion, sources said, in what could be the largest-ever U.S. initial share sale. AT&T; Chief Executive C. Michael Armstrong has said the largest U.S. telephone company is undervalued because investors don’t recognize the worth of its faster-growing units. AT&T; shares rose $2.31 to close at $59.75 on the NYSE.


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