At&T: Will The Bad News Ever End?

The telephone giant is stumbling--just when it faces the fight of its life

Has AT&T Corp. Chairman Robert E. Allen finally used up all his second chances? After eight years of downsizing, reorganizing, reorienting, and restaffing the telephone giant--and after just as many surprise setbacks and strategy shifts--his Sept. 24 bombshell was, to many, the last straw. "You wonder if management really has the ability to take it to the next level," says Hersh Cohen, manager of the Smith Barney Appreciation Fund, which holds about 1 million AT&T shares. "I've been a big booster, but I've got to reevaluate everything here."

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