As Paul Singer’s Elliott Management hedge fund takes aim at AT&T, it’s time to take on vulture capitalists that hollow out Main Street.

Hedge fund Elliott Management, founded by Paul Singer, has launched a campaign against AT&T arguing for an overhaul of the company to activate “the extraordinary value opportunity realizable at AT&T today,” largely by cutting costs, laying off workers, divesting assets and extracting cash for shareholders. This predatory approach to pumping up AT&T’s stock price would hollow out a major U.S. employer and critical provider of broadband and wireless services.

We estimate that more than 30,000 family-supporting jobs will be at risk of elimination or a reduction in wages and benefits if AT&T’s leadership adopts these proposals.

CWA opposes Elliott Management’s agenda at AT&T and rejects hedge fund profiteering.

The Communications Workers of America (CWA) has taken a strong stance against Elliott’s agenda:

  • The week Elliott Management launched its campaign against AT&T, CWA released a statement condemning Elliott’s out-dated corporate raider tactics.

  • CWA sent a letter to the AT&T board of directors outlining the harmful and short-sighted nature of Elliott’s proposal and urging the board to reject it and chart a more constructive path forward. The letter was also mailed to the top 100 shareholders of AT&T and distributed through the SEC EDGAR system online.

  • CWA sent a letter to the members of Business Roundtable calling for rejection of Elliott’s attack on AT&T and adherence to the principles of inclusive prosperity articulated in its updated “Statement on the Purpose of a Corporation.”
    • Six Business Roundtable members who signed the Statement are important shareholders in AT&T - controlling over 16% of shares in contrast to Elliott Management’s stake of less than 1%.

    • Two members of Business Roundtable - AT&T Chairman, Chief Executive Officer and President Randall Stephenson and KeyCorp Chairman and Chief Executive Beth Mooney - sit on AT&T’s Board of Directors.

We must challenge the destructive hedge fund playbook through legislative reform and by speaking out when hedge funds like Elliott seek to destroy jobs and communities for short-term gain.