The AT&T Corp. Board of Directors has unanimously voted to reject Comcast Corp.'s US$44.5 billion stock bid to acquire AT&T Broadband.
The board rejected the proposed acquisition on the grounds that it "did not reflect the full value" of the subsidiary, AT&T said Wednesday in a statement.
Earlier this month, Philadelphia-based cable TV operator Comcast submitted a proposal to AT&T's board, following several months of talks between the companies. The combined company would have had 22 million broadband subscribers.
AT&T's board voted to reject the proposal based partly on the advice and analysis of its financial advisors, and asked AT&T management to inform Comcast of its decision. The board has also directed management to look into other financial and strategic alternatives relating to AT&T Broadband, including restructuring plans, to provide a greater long-term value to shareholders, AT&T said.
The board still wants to separate AT&T Consumer and AT&T Business from AT&T Broadband, and create a separate tracking stock for AT&T Consumer, AT&T said.