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AT&T (T) is requesting the Department of Labor allow it to use $9.5B in preferred equity...

AT&T (T) is requesting the Department of Labor allow it to use $9.5B in preferred equity interest in its wireless division to help cover a pension shortfall that totaled $10.2B at the end of 2011. The contribution, which AT&T hopes will be approved by the end of 2013, will entitle cash distributions of $560M/year. AT&T would have the right to buy back the preferred interest after 5 years. (Verizon/Prudential)
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Comments (2)
  • ElSayre
    , contributor
    Comment (1) | Send Message
     
    Is this due to overpriced executives with diamond encrusted platinum parachutes eating up all the pension budget on their way out?
    19 Oct 2012, 02:14 PM Reply Like
  • Fractalshift
    , contributor
    Comments (11) | Send Message
     
    No it does not. One thing has nothing to do with the other. The assets in the retirement plan were debased by the market crash but outflows from the retirement plan continued to retirees. Now there is a shortfall.
    23 Oct 2012, 04:33 PM Reply Like
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