AT&T Corp’s share price has rocketed by 6.4% to $65 in the first two weeks of 1998, and is being seen as a growth stock by analysts after its proposed $11.3bn acquisition of Teleport Communications Group, the first dynamic move by new chief executive Michael Armstrong to change the fortunes of the lethargic giant. On January 26 Armstrong is due to announce his new strategy for AT&T which is rumored to include cost cutting measures and restructuring of the company. Further buoying up AT&T is the news that the Teleport deal could save AT&T between $1.2bn and $1.5bn a year, a year after the deal closes.
