The Elliott Management fund has announced a participation of 3,200 million dollars in the telecommunications giant AT&T, whose shares rose strongly in the New York Stock Exchange after the news.
Half an hour after the opening of Wall Street, AT&T shares gained about 4.80%, to almost 38 dollars, after Elliott assured that the shares could be worth at least 60 dollars in the future.
The fund, founded by billionaire Paul Singer, specializes in investing in companies it believes are underperforming and forcing changes in their management with aggressive campaigns.
In a letter published this morning, Elliott criticized AT&T’s strategy, especially its acquisitions, and called on the giant to get rid of unnecessary assets and cut costs.
According to Singer, the investment in the company is one of the largest ever made by his fund.
AT&T is one of America’s leading telecommunications groups and last year it expanded its empire with a merger with Time Warner that merged film and television businesses, including HBO and CNN.
U.S. President Donald Trump, a great critic of the news network, celebrated on Twitter on Monday that an activist investor had entered AT&T, hoping that it would put an end to the “false news” that in his opinion CNN releases.
Trump reiterated his message that CNN is “bad for the U.S.” and accused the network of disseminating “bad information” and “false news” around the world.