The AT&T Restructuring of 1995 :: essays papers

The AT&T Restructuring of 1995 Wednesday, September 20, 1995, AT&T Chairman and Chief Executive Officer Robert E. Allen announced plans for a strategical restructuring that would separate AT&T into troika publicly traded global companies. Robert E. Allen said, The smart set was taking this bold step to capitalize on the opportunities in severally business segment of the global culture industry -- communication theory services, communications equipment, and transaction-intensive computing. downstairs the plan, a fourth business -- AT&T Capital thr wizard -- would be sold, and AT&T shargonowners would hold shares in each of the three remaining companies. Changes in customer needs, technology and public policy are radically transforming our industry, said Robert E. Allen. We now see this restructuring as the next crystalline turn in AT&Ts journey since divestiture. It will make AT&Ts businesses more valuable to our shareowners, even more responsively to their customers , and better able to think on the growth opportunities in their individual markets.A focus of one of the new companies will be to provide the best communications and information services worldwide. The services accompany, operating under the familiar AT&T brand name, would consist of AT&Ts current communications Services Group, the AT&T Universal card Services Corporation, the newly established AT&T Solutions consulting and systems-integration organization, and AT&T Wireless Services. The services company plans to take a leak an AT&T Laboratories unit around the core of the Bell Laboratories. AT&Ts products and systems businesses, along with the world-renowned Bell Laboratories, would constitute a communications systems and technology company that would immediately be the global leader in its industry, said Robert E. Allen. The communications equipment company would include AT&Ts Network Systems Group, global Business Communications Systems, Consumer Products, AT&T Paradyne and Microelectronics. The new company named lambent Technologies, would be a powerful competitor in the fast-growing communications systems market. Henry B. Schacht was designated Lucent Technologies Chief Executive Officer. The companys computer unit AT&T Global Information Solutions (GIS), would be established as an independent company by spinning it off to AT&T Shareowners. Our services and systems businesses are at the intersection of tremendous change and opportunity, said Allen. This restructuring ensures that each can keep up the path of greatest opportunity without worrying about bumping into each new(prenominal) along the way. Lars Nyberg was announced Chief Executive Officer for NCR, formerly cognize as GIS, the new computer company.