New York City comptroller William Thompson objected to the management structure that will be in place after AT&T Corp. sells its cable systems,
protesting to the Securities and Exchange Commission that it may violate securities law.
Tucked away in the proposal to sell AT&T Broadband to Comcast Corp. is a
governance plan that includes seating directors until 2005 with no provision for
removal by shareholders, Thompson said in a letter to SEC chairman Harvey Pitt.
That "would deal a crippling blow to shareholder rights," he argued.
The sale and the governance plan are joined.
Shareholders wanting to approve the sale of the cable systems must also
approve the governance.
Thompson is a trustee of municipal pension funds that hold 13.9 million
AT&T shares and 3.8 million Comcast shares.
The American Federation of Labor and Congress of Industrial Organizations,
Connecticut's treasurer and the Council of Institutional Investors, a group of
large pension funds, wrote similar letters.