AT&T Corp and Time Warner Inc’s cable television unit – where Baby Bell US West Inc already holds 25.5% – are discussing a pre-emptive strike against MCI Communications Corp and News Corp Ltd and the Bells by teaming up to offer local and long-distance telephone service to millions of consumers, the Wall Street Journal reported. Any move is expected to need a complex restructuring that would break Time Warner Communications into two companies, one holding its entertainment content assets, and the other encompassing its cable systems. US West could stymie the deal.
