US telecommunications giant AT&T Inc. (NYSE: T) has been simultaneously the largest customer of Amdocs Ltd. (NYSE: DOX) and one of the largest investors in the Israeli company. However, AT&T has reduced its holding to less than 5% of Amdocs' share capital.
In a report to the US Securities and Exchange Commission (SEC), AT&T was listed as owning nearly 10 million Amdocs shares, amounting to 4.8% of the company. In a previous report, AT&T was listed as owning 5.1% of Amdocs, which means that in the interval it sold about 400,000 shares, which are worth about $9.7 million at Amdocs' current share price of $24.46.
Amdocs's relationship with AT&T is a long one, predating the US company's current configuration. In the 1980s, Southwestern Bell, , acquired 50% of Israeli company Aurec Group that became Amdocs. Southwestern Bell went on to become SBC, which acquired the original AT&T and took over the name.
Amdocs's projects with AT&T and its subsidiaries accounted for 28% of Amdocs's business in 2008, amounting to $885 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2009
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