AT&T stops share repurchase plans in response to COVID-19 outbreak

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXMPEB5O0YB_M.jpg
© Reuters. © Reuters.

By Arriana McLymore

NEW YORK (Reuters) – AT&T Inc (N:) withdrew plans to repurchase $4 billion in common stock as it was unable to predict the impact of the coronavirus outbreak on its business, the company said on Friday in a regulatory filing.

Shares of AT&T fell 8% in midday trade.

AT&T said it planned to continue investing in its network and taking care of its employees.

“The impacts of the pandemic could be material, but due to the evolving nature of this situation, we are not able at this time to estimate the impact on our financial or operational results,” AT&T said in the filing.

Washington has sought to stabilize Wall Street with a $1 trillion economic stimulus plan, but some critics think companies should be banned from stock buy backs under the package.

“If there is so much as a dime of corporate bailout money in the next relief package, it should include a reinstated ban on stock buybacks,” Representative Alexandria Ocasio-Cortez (D-N.Y.) said in a tweet on Tuesday.

U.S. President Donald Trump said on Thursday during a press conference that he would not oppose banning stock repurchases under his administration’s stimulus plan.

AT&T’s accelerated repurchase plan, originally announced on March 3, was set to complete the buy backs in the second quarter.

Companies like Starbucks (O:), which announced a 40 million share buyback program on Wednesday, are moving ahead with plans.

The No. 2 U.S. wireless provider announced on Wednesday that it is temporarily closing stores to reduce the spread of the virus and encouraged customers to make purchases online. Earlier this month, AT&T told non-retail employees to work remotely.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.