The Biggest Issue

To raise money for expansion, currently costing $7,750,000 each working day, American Telephone & Telegraph Co. last week announced the largest direct stock issue in history: 5,750,000 in new shares to raise $575 million. Stockholders of record on a September date to be set by the directors will get rights allowing the purchase of one new share at $100 for each ten shares then held. Rights, estimated to be worth about $8 (at the current market), may be sold if the stockholder does not want to buy.

Plans for the issue, A.T. & T.'s first stock offering since 1930, are contingent on stockholder approval of a proposal to increase authorized stock from 60 million to 100 million shares. But approval by both the stockholders and SEC is a virtual certainty. Last year A.T. & T. spent a record $1.6 billion in expansion. President Cleo F. Craig expects the total to top $2 billion both this year and next.

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