Activist Investor Rips AT&T Strategy

Activist investor Elliott Management Corp. disclosed a $3.2 billion stake in AT&T Inc., criticized the company’s strategy and called on the telecommunications giant to shed unnecessary assets.

The Wall Street Journal reports the New York hedge fund wrote in a letter to the company released Monday that it would seek seats on the company’s board and challenged AT&T to sharpen its focus on its core assets, including its relatively healthy wireless business.

The fund didn’t ask AT&T to sell specific divisions but said the company should review any assets that lack a strategic rationale, including the DirecTV satellite service and Mexican wireless operations.

With a market value of more than $260 billion, the Dallas company is among the hedge fund’s biggest corporate targets to date. AT&T shares rose 4% to $37.80 in Monday morning trading.

Elliott assailed AT&T management for alleged missteps including the purchase of DirecTV and said it remains cautious about last year’s purchase of Time Warner Inc., a collection of TV and film businesses including HBO and CNN that was renamed WarnerMedia.