A.T. and T. told to sell

Press, Volume CXIV, Issue 33700, 25 November 1974, Page 21

A.T. and T. told to sell

(N.Z.P. A. -Reuter — Copyright) WASHINGTON. The United States Government has charged the American Telephone and Telegraph Company with violating antitrust laws, and has asked a Federal court to compel it to give up its manufacturing subsidiary, Western Electric. The justice Department action came 75 minutes after the Securities and Exchange Commission had ordered suspension of all trading in A.T. and T. shares in the United States.

A.T. and T., which has assets of more than SUS67,OOOm is the parent company of the Bell Telephone System, which, in turn, handles 90 per cent of all telephone calls in the United States.

The action filed by the Justice Department’s anti-trust division asks that Western Electric be broken into two or more competing companies, if necessary, to assure competition . in the manufacture and sale of telecomunications equipment.

A wave of selling hit the stock of American Telephone and Telegraph Company (A.T. and T.) on Thursday in New York, and more than 870,000 shares changed hands in the world’s biggest company. When trading was suspended on Wednesday on the orders of the Securities and Exchange Commission, the shares were selling at SUS4S 5-8 on Thursday they closed at SUS 42 5-8.