AT&T Corp raised $500m before expenses with an issue of 7.75% notes due March 1 2007, sold at $99.966% to yield 7.754% to maturity plus accrued interest from March 1. Proceeds will go to reduce its outstanding commercial paper and for working capital, AT&T said. Sale of the notes was negotiated by an underwriting group led by Lehman Brothers with J P Morgan Securities Inc; Merrill Lynch & Co; and Morgan Stanley & Co Inc as co-managers.
IBM Corp wants to get the dividend burden on its Series A 7.5% depositary shares off its books and will buy any it can find from time to time in the open market and in private transactions, depending on market conditions. There are 10.5m of them out.
