AT&T charter revised

AT&T shareholders yesterday approved an amendment to the company’s charter that makes it easier for management to win approval for AT&T’s massive breakup plan.

The amendment changes the AT&T charter so that mergers, consolidations and disposals of company assets require approval by a simple majority of shareowners instead of two-thirds of shareowners. The measure received approval from about 96%, or 2.7 billion, of the shares voted at AT&T’s annual meeting. Of AT&T’s total outstanding shares, 63% voted in favor while 3% voted against the proposal (34% abstained).

The AT&T breakup that will separate the company into distinct business, broadband, and long distance entities and create a tracking stock for the consumer unit will require several shareholder votes. The first will be held in late summer or early fall, according to AT&T.

Shareholders used AT&T’s meeting in Cincinnati yesterday as a forum for airing numerous criticisms about the company, including the cutting of AT&T’s dividend and the size of Chairman and CEO C. Michael Armstrong’s compensation package.