Apollo to invest $2 billion in AT&T subsidiary, AT&T Mobility

Shares of AT&T Inc. (T) rose 0.4% in premarket trading Monday, after alternative asset manager Apollo Global Management Inc. (APO) announced an agreement to invest $2 billion in preferred stock of AT&T subsidiary AT&T Mobility II LLC. Apollo expects to complete the investment in June 2023. AT&T Mobility plans to use the proceeds to partially replace the $8 billion in preferred interests that were outstanding before the fourth quarter of 2022. AT&T's stock had slumped 3.8% on Friday after a report Amazon.com Inc. (AMZN) was in talks with certain wireless carriers about offering phone service plans to Prime members. The stock has tumbled 19.1% over the past three months through Friday, while the Communication Services Select Sector SPDR exchange-traded fund (XLC) has rallied 15.3% and the S&P 500 has gained 5.9%.

-Tomi Kilgore

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06-05-23 0816ET

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