Elliott Management Corporation, which manages $3.2 billion worth of AT&T shares, wrote a lengthy letter to the telecom and media giant’s board of directors on Monday outlining what Elliott called AT&T’s “long-term underperformance.”
Signed by partner Jesse Cohn and Elliott’s Associate Portfolio Manager Marc Steinberg, the detailed memo seemed to have an immediate impact on AT&T’s stock price, as shares rose more than 5% in pre-market trading. That’s more than $2 per share for the relatively inexpensive stock, which Elliott believes could be as high as $60 per share — or more — by the end of 2021.
The U.S. stock markets officially open at 9:30 a.m. ET. AT&T stock (T) closed Friday at $36.25 per share.
The full 23-page letter from Elliott to AT&T can be found here.
AT&T’s current market cap is just under $265 billion.
Elliott Management is perhaps best known to Hollywood audiences as a backer of Ryan Kavanaugh’s Relativity studio, though Dune Capital bought out much of those holdings in 2014.
More to come…