Trump says it is ‘nice information’ activist investor concerned with AT&T
“Nice information that an activist investor is now concerned with AT&T. Because the proprietor of VERY LOW RATINGS @CNN, maybe they’ll now put a cease to the entire Pretend Information emanating from its non-credible ‘anchors,'” Trump wrote. “Additionally, I hear that, due to its dangerous scores, it’s dropping a fortune … However most significantly, @CNN is dangerous for the USA.”
AT&T didn’t instantly reply to CNBC’s request for remark relating to the president’s tweets.
AT&T shares soared earlier Monday after Elliott Administration, a famend Wall Avenue activist investor, introduced it owns $3.2 billion of the underperforming telecom big’s inventory. The hedge fund stated it despatched a letter to the corporate’s board and argued for tactics AT&T can “enhance its enterprise and notice a historic enhance in worth.”
Paul Singer — founding father of Elliott Administration — gave $1 million to Future45 final 12 months, a pro-Trump tremendous PAC that was concerned with the congressional midterm elections.
The Elliott workforce additionally raised issues about AT&T’s current acquisition of Time Warner, CNN’s dad or mum firm.
Although Elliott didn’t criticize CNN or its content material, the hedge fund expressed doubts as to why AT&T’s buy of Time Warner made strategic sense, saying “AT&T has but to articulate a transparent strategic rationale for why AT&T must personal Time Warner.”
Activists like Elliott put money into what they imagine are underperforming corporations after which advocate for change. Such proposals usually vary from mixing up operational technique to firing and changing CEOs and board members.
In response to the hedge fund’s letter, AT&T stated its administration workforce and board of administrators “keep an everyday and open dialogue with shareholders and can evaluate Elliott Administration’s views within the context of the corporate’s enterprise technique.”
For his half, Trump has lengthy had a strained relationship with the press, and with CNN particularly. The president earlier this 12 months referred to as for a boycott of AT&T to drive “massive adjustments” at its CNN subsidiary, which Trump usually accuses of biased and unfavorable protection.
“I imagine that if individuals stoped utilizing or subscribing to @ATT, they might be pressured to make massive adjustments at @CNN, which is dying within the scores anyway. It’s so unfair with such dangerous, Pretend Information!” the president tweeted in June, misspelling “stopped.”
Trump has lambasted CNN’s protection since his presidential candidacy. On the marketing campaign path in 2016, he vowed to dam AT&T’s acquisition of Time Warner. The Justice Division in February ended its makes an attempt to cease AT&T’s buy Time Warner after a federal appeals courtroom rejected the federal government’s arguments to dam the $80 billion deal.
— CNBC’s Brian Schwartz contributed reporting.