(Reuters) - AT&T’s (T.N) main labor union on Thursday called on the company to reject hedge fund Elliott Management’s proposals for a major shakeup of the United States’ second-largest telecommunications carrier.
The Communications Workers of America, which represents over 100,000 AT&T workers, said the hedge fund’s plan would eliminate jobs, send work to low-wage contractors and harm the interests of customers and long-term investors.
“Elliott Management has taken the obsession with shareholder value to an extreme, pushing proposals that in the end benefit only a small subset of shareholders - themselves,” CWA President Chris Shelton.
Activist investor Elliott disclosed a $3.2 billion stake in AT&T on Monday, questioned its $85 billion acquisition of TimeWarner and said it should sell off non-core assets.
AT&T and Elliott did not respond to requests for comment.
Reporting by Neha Malara in Bengaluru; Editing by Saumyadeb Chakrabarty