ATT <T> TO REDEEM 15.5 MLN PREFERRED SHARES
American Telephone and Telegraph said
that, effective May 1, it will spend 775 mln dlrs to redeem 
15.5 mln shares of the outstanding 16.7 mln shares in two
publicly held preferred stock issues.
    The two issues have a stated value of 50 dlrs per share and
pay 3.64 dlrs and 3.74 dlrs in annual dividends, respectively,
ATT said, adding it will redeem 7.9 mln shares of its 3.64 dlrs
pfd stock and 7.6 mln shares of its 3.74 dlrs pfd stock.
    ATT's corporate vice president and treasurer S. Lawrence
Prendergast said ATT expects to finance the redemption with
cash.
    "The redemption is part of our continuing efforts to reduce
ATT's financial risk," Predergast said. "In 1986 we reduced our
outstanding debt and preferred stock by a total of 1.6 billion
dlrs. As a result our annual fixed charges were reduced by
almost 200 mln dlrs and our ability to service our existing
debt was strengthened."
    The May one preferred stock redemption will save about 50
mln dlrs in dividends annually and will bring ATT's total debt
and preferred stock reduction to more than 2.5 billion dlrs
since the beginning of 1986, Predergast said.
    ATT said it is required by the issues' terms to redeem
300,000 shares each year as well as providing for the optional
redemption of additional shares.
    The company said it will redeem 600,000 shares of the 3.64
dlrs preferred issue for 50 dlrs per share and 7.3 mln shares
of the issue for 50 dlrs per share plus a premium of 2.18 dlrs
per share.
    ATT said it will redeem each of the 3.74 dlrs preferred
shares 50 dlrs a share plus a premium of 2.35 dlrs a share.
    After the redemption, 600,000 shares of each issue will
remain outstanding, ATT said.
    ATT said it will select the redeemable shares by lot
according to the issues' terms, adding that the record date for
determining the redeemable shares will be March 26, 1987.
    The company said it will pay the May 1 dividend for all
preferred shares, including those being redeemed, in a normal
way to shareholders of record as of March 31, 1987.
    ATT said no transfer of the shares being called for
redemption will be made after March 26, 1987 and the transfer
books will close for those shares on that date.
    American Transtech Inc, the paying agent for the shares, 
will send notices of the redemption on March 30 to the
preferred shareholders who were selected by lot, ATT said.
 Reuter
