AT&T will swap $2.9 billion in stock for stakes in [email protected] controlled by competitors Comcast and Cox Communications. The deal, expected for months, boosts AT&Ts stake in the high-speed Internet access company to 38 percent from 23 percent. More to the point, observers say, the move gives the telecom giant control of 79 percent of voting shares.
No longer concerned with what the neighbors will say, satellite phone company Globalstar took a step closer to bankruptcy last week when it said it will conserve cash by not making debt payments this year to Loral Space & Communications. Globalstar spent more than $4 billion on its satellite system, but has signed fewer customers than expected.
Dave House Inside
Telecom-equipment start-up Allegro Networks has named former Bay Networks Chief Executive Dave House its president, chairman and CEO. House, an early Allegro investor, is also a former Nortel Networks president and a veteran Intel executive credited with coining the “Intel Inside” catch phrase. He succeeds P.J. Singh, who will remain at Allegro as chief technology officer.