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Unions oppose AT&T breakup

The AFL-CIO and the Communications Workers of America, both major AT&T shareholders, are actively lobbying other AT&T investors to join them in opposing the telecom's breakup plan, The Wall Street Journal reports.

Respresentatives of the two unions, which hold a 20% stake in AT&T, told institutional investors during a conference call on Thursday that the AT&T plan to split itself into four separate entities was flawed and would hurt investors in the long run. A vote on the AT&T proposal is slated for a vote among its shareholders in May.

AT&T unveiled its plan in October in the face of an unsuccessful initiative to bundle its services and $62 billion - now $65 billion - in debt.