AT&T Says John Stephens to Become CFO When Lindner Retires

March 04, 2011, 7:39 PM EST

By Amy Thomson

(Updates with analyst?s comment in fourth paragraph.)

March 4 (Bloomberg) -- AT&T Inc. said John Stephens will become chief financial officer, succeeding Rick Lindner, who is retiring after helping integrate acquisitions that transformed a regional carrier into the top U.S. phone company.

Stephens will take over on June 1, the Dallas-based company said today in a statement. A 19-year AT&T veteran, Stephens spent the past decade as controller, responsible for financial reporting, business planning and accounting policy.

Lindner, 56, became finance chief in 2004 and helped with dozens of acquisitions, including the January 2007 purchase of BellSouth Corp. for more than $80 billion. That deal remains the industry?s biggest worldwide, according to Bloomberg data. Previously he served as finance chief of Cingular Wireless, the mobile carrier that is now part of AT&T.

?He certainly took a leadership role in transforming AT&T,? said Michael Nelson, an analyst at Mizuho Securities USA Inc. in New York who rates AT&T shares ?outperform? and doesn?t own any. ?The company made significant acquisitions, rolling up the sector to become the dominant player it is today.?

While AT&T is the largest U.S. phone company, it?s second to Verizon Wireless in mobile subscribers. Verizon gained the top spot after its parent, Verizon Communications Inc., bought Alltel Corp. in January 2009. At the same time, AT&T customers began complaining about dropped calls and other network problems.

Revenue from home-phone lines, AT&T?s traditional business, is declining as more customers move to mobile phones and digital service. Sales and net income declined in 2009 amid the global economic crisis.

The company rebounded in 2010, benefiting from surging demand for smartphones, including Apple Inc.?s iPhone. Revenue grew 1.4 percent to $124.3 billion last year.

AT&T fell 21 cents to $27.92 at 4 p.m. in New York Stock Exchange composite trading. The stock has declined 5 percent this year.

--Editors: Lisa Wolfson, Nick Turner

To contact the reporter on this story: Amy Thomson in New York at athomson6@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net

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