AT&T gets on the phone with Elliott

Giant AT&T is in talks with hedge fund Elliott Management to resolve the activist investor’s campaign for change at the phone and media conglomerate, people familiar with the matter said.

The two sides have held a series of wide-ranging discussions since Elliott disclosed a 1 percent stake in AT&T five weeks ago and publicly urged the company to make changes aimed at igniting its lackluster share performance. AT&T and Elliott could reach an agreement as soon as this month, though the talks could also fall apart, the people said.

The two sides are discussing a number of items that could form the basis of a pact, including a move by AT&T to launch a strategic review of assets that could be sold or spun off and a push to improve margins. AT&T could also agree to make changes to its board with input from Elliott.

AT&T recently delayed the release of its quarterly earnings, initially scheduled for next week, giving the two sides more time to reach an agreement. The Dallas company is now expected to discuss its latest results on Oct. 28, a day before it will unveil its HBO Max streaming service at an event in Burbank, Calif.

Should AT&T and Elliott come to terms by then, it would be a relatively quick turnaround compared with the traditional activist campaign. It would show that AT&T, which has enlisted bankers at Centerview Partners and Goldman Sachs Group for help, is eager to avoid a drawn-out public brawl proxy fight and get on with addressing the challenges to its business.

Elliott, one of the most prolific and aggressive activists, has previously waged proxy fights at Hess and Arconic.