AT&T; Halts Purchases of Cable-TV Gear

AT&T; Corp. said it suspended purchases of Antec Corp. and CommScope Inc. equipment used to upgrade its cable-television systems for phone service to reduce its stockpile of gear through the rest of this year. Shares of Duluth, Ga.-based Antec and Hickory, N.C.-based CommScope each tumbled more than 20%. Other makers of cable-TV equipment that supply AT&T;, such as Scientific-Atlanta Inc., also declined. AT&T; halted purchases because its Broadband unit has enough Antec and CommScope gear and doesn’t want to exceed its budget, spokesman Steve Lang said. The largest U.S. cable-TV company, which unveiled plans last month to split into four businesses after its shares fell 47% this year, is the latest carrier to slow equipment purchases amid lower prices for services. “AT&T; has been notorious for having inefficient handling of its inventory in the past,” said Anton Wahlman, a UBS Warburg analyst who rates Antec a “buy.” Antec shares fell $2.36, or 21%, to $8.70 on Nasdaq and have fallen 76% this year. CommScope fell $5.75, or 24%, to $18.13 on the New York Stock Exchange. It’s down 55% this year.