Unions Sue to Block AT&T; Charter Change

Three union pension funds filed a lawsuit to block an AT&T; Corp. proposal that would make it easier for the company to win shareholder approval for a plan to split into three companies. The complaint, filed in state Supreme Court in New York, opposes an AT&T; effort to change its charter to require that shareholders approve mergers, consolidations or dissolution of the company by a simple majority. Those actions now require a two-thirds vote. The AFL-CIO and the Communication Workers of America, which represents 35,000 AT&T; employees, oppose the company’s breakup plan because it reverses AT&T;’s strategy of bundling telecommunications services. The Washington-based labor federation says the effort to alter AT&T;’s charter is an “end run” by the company to defeat opposition to the breakup. Shareholders will vote on the proposed change to the charter at AT&T;’s annual meeting May 23. The company, which declined to comment on the lawsuit, contends that most publicly owned U.S. corporations require a majority vote, rather than two-thirds. AT&T; shares closed up 45 cents at $23.35 on the NYSE.