Filed by AT&T Corp. Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934
Subject Company: AT&T Corp. Commission File No. 1-1105 November 1, 2000
MATERIALS DELIVERED TO REGISTRANT'S EMPLOYEES
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Over the weekend I've been reading press coverage, your e-mails and the
questions you faxed me during the all-employee meeting on our announcement. We
sure need to do a better job of getting the press to tell our story (and we
will), but I want to make sure that you understand why our approach is really
the right one for our customers, shareholders, and the people who work here.
With each business having greater freedom, focus and flexibility, AT&T people
should be able to respond to our customers faster and be more adaptable to
market changes. Satisfying customers better is the underpinning of our future
growth. And realizing our growth potential by best serving customers is what
will enable better opportunity for all of us.
Whenever we win for our customers it will be, in the long run, a win for us. We
should be able to make this win/win happen going forward as we more directly
apply our resources, and as we will each be more directly accountable and
rewarded. More-focused people who are able to better satisfy customers will
drive business growth, individual opportunity and shareholder value.
Each of our new companies will be valued on its stand-alone operational merits
and financial results. When our businesses outperform the competition, the
result will show up in their individual stock prices and not be offset by
averaging the results of all our businesses as we do now. With four companies to
choose from, shareholders will be able to select the ones that best suit their
investment interests.
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For the past two years you have worked tirelessly to combine multiple
communications services over our cable, wireless and network facilities. You
have had strong results on three fronts. You've bundled local, voice, data, long
distance and solutions services for business customers. You've bundled local,
roaming, and long distance over wireless. You've bundled video, voice and data
over cable.
You've done this well, and together our growth businesses have grown at a rate
of about 20 percent through the first three quarters of this year. It's a
terrific accomplishment.
Going forward we will continue providing bundled services on AT&T's facilities
just as we said we would and just as our growth proves we know how to do.
To net it out, the creation of four AT&T companies will strengthen our focus,
make it possible to reward people more directly and deliver value to our
shareholders. Our plan is based on your initial success in bundling
communications services on AT&T facilities and on the confidence that AT&T can
continue to do so better than anyone else.
We should face this future with confidence because we're operationally
delivering on it now. The greatest thing that lies ahead of us is our
opportunity.
Mike
In connection with these transactions, AT&T will be filing proxy statements,
tender offer statements and other materials with the Securities and Exchange
Commission. Security holders are urged to read these materials when they become
available because they will contain important information. Investors and
security holders may obtain a free copy of these materials when they become
available as well as other materials filed with the Securities and Exchange
Commission concerning AT&T at the Securities and Exchange Commission's website
at http://www.sec.gov. In addition, these materials and other documents may be
obtained for free from AT&T by directing a request to AT&T at 295 North Maple
Drive, Basking Ridge, NJ 07920; Attn: Investor Relations. AT&T and its officers
and directors may be deemed to be participants in the solicitation of proxies
from AT&T's shareholders with respect to these transactions. Information
regarding such officers and directors is included in AT&T's proxy statement for
its 2000 annual meeting of stockholders filed with the Securities and Exchange
Commission on March 27, 2000. This document is available free of charge at the
SEC's internet site or from AT&T as described above.
