INTERNATIONAL - AT&T Inc said on Monday it would add two new board members and consider selling off up to $10 billion worth of non-core businesses next year, bowing to pressure from activist investor Elliott Management.
Elliott, which revealed a $3.2 billion stake in the company in September, has been pressing the telecommunications giant to cut costs, make management changes and scale back expansion aspirations. The two sides have held discussions, Reuters reported earlier this month.
The company also said that it expects Randall Stephenson to remain chief executive officer through at least 2020.
However, in a letter to shareholders supporting the plan, Elliott Management said AT&T would evaluate all potential Chief Executive candidates and separate the role of Chairman and Chief Executive.
“We commend AT&T for the positive steps announced today, which will create substantial and enduring shareholder value at one of America’s greatest companies,” Elliott said in a statement.