will increase its stake in
through a transaction that will give
shares of the telephone company valued at $2.9 billion.
Comcast and Cox are planning to exchange shares in Excite@Home for shares of AT&T. Comcast and Cox were given the right to sell about 60 million shares of Excite@Home to AT&T as part of an agreement signed in March to reorganize the Internet service provider's governance.
Following the transactions, AT&T will hold a 38% economic interest in Excite@Home, up from 23% today. AT&T's 74% voting interest will increase to about 79%. The number of AT&T shares issued in the transaction will depend on the average price during a 30-day trading period that began in mid-December.
Shares of AT&T recently gained 94 cents, or 4%, to $24.19, while Excite@Home gained 69 cents, or 8.9%, to $8.47. Comcast rose $1.44, or 3.4%, to $44.31, and Cox traded up 38 cents, or 0.8%, to $48.69.