AT&T Left Exposed to Elliott by Banker Goldman Sachs - Sources

When news broke Monday morning that Elliott Management launched an activist campaign against AT&T (NYSE: T), Wall Street asked ‘how could one of the world’s largest corporations be left so exposed?’ The reason is seen related to the fact that Goldman Sachs, AT&T's long-time investment bank, had their top activism banker Steven Barg poached by none other than Elliott last month, sources said. That’s right – the key person at Goldman that could have helped AT&T avoid such a situation is now working at the firm targeting the telecom giant.

Barg was previously co-head of Goldman’s merger and acquisitions shareholder advisory. He is now at Elliott as its new global head of corporate engagement.

This morning, Elliott disclosed it has amassed a massive $3.2 billion stake in AT&T and called on the company to implement value-creation opportunities that it believes can drive the stock to $60+ per share. Elliott questioned the company’s M&A strategy, which it said has led to the stock’s underperformance. Elliott outlined a four-part plan to improve the share price and AT&T's business.

AT&T is said to have first learned about the Elliott stake on Friday, blindsiding management and the board. The company said it will review Elliott’s perspectives and discuss the topics outlined with the hedge fund.

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