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AT&T joint venture with BT in danger of collapse
Posted: 20-Feb-2001 [Source: FT]

[AT&T is unhappy with results from its three year joint venture with British Telecom.]

By Dan Roberts in London and Richard Waters in New York -- "AT&T and British Telecommunications are discussing ways to salvage Concert, their three-year-old joint venture offering services to large corporate customers, amid growing acceptance by both that it is failing.

"Executives at AT&T are believed to have suggested it take majority control of the 50:50 venture, but have also threatened to withdraw if a new structure cannot be agreed.

"Last year, BT and AT&T had attempted to resolve Concert's problems by injecting further assets through a full merger of their business services divisions. These negotiations fell apart over price, but this option is also back on the table.

"AT&T is unhappy that Concert has failed to hit its sales targets in Europe and blames lack of co-operation from BT's partially owned subsidiaries outside the UK.


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