Report: KKR eyes AT&T

Newsweek magazine is reporting that former executives of US telecom conglomerate AT&T are working with KKR on a proposed privatisation.

Several former high-ranking executives from beleaguered telecommunications giant AT&T are working with Kohlberg Kravis Roberts & Co on a possible takeover, according to weekly newsmagazine Newsweek.

Recently, AT&T announced disappointing earnings and decided to stop competing for residential long-distance business.

The executives now working with KKR left the telecom conglomerate after disagreements with current management, according to the report.

A Reuters report, quoting a source close to the firm, said that KKR is not considering a bid for AT&T.

AT&T has a current market capitalisation of more than $11 billion.

AT&T used to be known as Ma Bell because of its matronly monopoly over the entire American phone network.