AT&T Corp. said it would swap stock valued at about $2.9 billion with rival cable operators Comcast Corp. and Cox Communications in exchange for shares of high-speed Internet provider Excite@Home Corp. The deal would raise AT&T's stake in Excite to about 38 percent from 23 percent and its voting interest in the company would rise to about 79 percent from 74 percent. Comcast and Cox were given the right to sell a total of about 60 million shares of Excite@Home to AT&T as part of an agreement announced in March 2000 to reorganize Excite@Home. The number of AT&T shares to be issued will be determined by its average selling price during a 30-day trading period that began in mid-December.
Copyright January 2001, Crain Communications Inc.