AT&T two-way trading begins April 4

AT&T two-way trading begins April 4

Note the date of a special trading period for AT&T shareholders regarding the spinoff of Warner Media.

AT&T (T) has a current dividend yield of 4.64% and is rated as “Safe” by SimplySafeDividends. I hold T in my Medium Yield Portfolio. In total T is 0.3% of my portfolio.

This event is new to me and I’m still evaluating what I’m going to do. I don’t think I have much interest in holding stock of the new Warner Bros. Discovery entity. If that’s the case I plan on selling my right to receive stock in that entity and putting it back into AT&T.

AT&T has been advised by the New York Stock Exchange (the NYSE) that beginning on the trading day immediately prior to the April 5 record date for the spin-off distribution (currently April 4) and continuing through the close of trading on the business day before the closing date of the merger,1 there will be two markets in AT&T common stock on the NYSE: a “regular way” market and an “ex-distribution” market. During this period of two-way trading in AT&T common stock, there will also be a market on the Nasdaq for WBD common stock on a “when issued” (“WI”) basis.

The trading options that will be available during the two-way trading period are:

AT&T Regular Way Trading
If, during the period of two-way trading, an AT&T shareholder sells a share of AT&T common stock in the regular way market under AT&T’s NYSE symbol, “T,” the shareholder will be selling both the share of AT&T common stock and the right to receive shares of WBD common stock in the transaction.

AT&T Ex-distribution Trading
If, during the period of two-way trading, an AT&T shareholder sells a share of AT&T common stock in the ex-distribution market under the temporary NYSE symbol “T WD,” the AT&T shareholder will be selling only a share of AT&T common stock and will retain the right to receive shares of WBD common stock in the transaction.

WBDWV Trading
During the two-way trading period, an AT&T shareholder also has the option of selling the right to receive shares of WBD common stock while retaining shares of AT&T common stock. This option will be available under the temporary Nasdaq symbol “WBDWV”.

Trades under the symbols “T WD” and “WBDWV” will settle after the closing date of the WarnerMedia-Discovery transaction. If the transaction is not completed, all trades made under these temporary symbols will be cancelled.

AT&T Announces Details for Completion of WM Spin-Off (att.com)