AT&T Sulks Toward Reverse Splitsville

We already knew Ma Bell was selling the house. But Wednesday's plan to move into a trailer park took everyone by surprise.

Facing the prospect of a $4 stock after its cable business is sent packing to Comcast (CMCSK Quote) land, AT&T (T Quote) Wednesday proposed a 1-for-5 reverse stock split to help boost its soon-to-be-orphaned share price.

The move is highly unusual for a blue-chip company, seeing as reverse splits, in which the shares outstanding are reduced, are more typically the province of outfits that are stuck on the pink sheets. But so goes the grand legacy of Ma Bell. After a $100 billion roll-up aimed at gussying her up into the new, hard-hitting Ma Cable, AT&T now faces the prospect of returning to the puny phone business, which itself is facing some difficult times. ...