AT&T'S RINGING HEADACHE

A YEAR AFTER ANNOUNCING ITS THREE-WAY SPLIT-UP, ITS QUARTERLY PROFITS AND STOCK PRICE ARE DIVING

What a way to celebrate an anniversary! Last Tuesday, just over a year after announcing that AT&T would split itself into three parts, chairman Robert Allen placed a conference call to investment analysts to issue a progress report. What he said promptly knocked $9 billion off the company's market value: it dropped $5.625 a share to $51.50. The reason: the phone company, still the biggest piece, is likely to earn about 10% less profit in the third quarter than analysts estimated. Allen said that net in the fourth quarter will also be below forecasts. That means profit will be down from...

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