AT&T Corp. said Friday that it has received a favorable tax ruling from
the Internal Revenue Service related to its planned spinoff of AT&T
Broadband.
Under the terms of the ruling, the spinoff will be tax-free to AT&T's
U.S. shareholders.
The IRS ruling was a condition of the proposed merger between AT&T
Broadband and Comcast Corp. The company expects the merger -- which will create
an MSO with 22 million subscribers -- to close by year-end.
