LONDON (ShareCast) - (Sharecast News) - AT&T shares surged in pre-market trade on Monday after activist investor Elliott Management wrote a letter to its board outlining a plan to restructure the business and unlock value that could see the shares hit $60.
Disclosing a $3.2bn interest in the company, Elliott said the shares could reach $60 by the end of 2021 under its proposed plans.

The activist investor said in the letter that its large-scale investment in AT&T reflects a "deep conviction in the extraordinary value opportunity realisable" at the company.

"Elliott has made a substantial investment in AT&T - among its largest ever - because it exhibits the unique combination of valuable assets, historical underperformance, a depressed valuation and a clear path forward to generate extraordinary value for shareholders and other stakeholders," it said.

Elliott noted that shareholder returns have been disappointing over a prolonged period of time. In addition, it said a combination of strategic and operational setbacks has eroded the business focus and shareholder value.

"Despite the setbacks, AT&T still possesses a world-class collection of leading assets, priced today at historically discounted levels," it said.

Elliott went on to say that its 'Activating AT&T Plan' would allow the company to unlock significant value by focusing its asset portfolio, improving operational performance, instituting clear capital priorities, and enhancing leadership and oversight.

"These steps will create value that is substantial and achievable today," it said.

At 1325 BST, AT&T shares were up 7.2% at $38.88.

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