AT&T preferreds down amid antitrust fights; Ally Financial, Allstate preferreds lower

By James McCandless

San Antonio, April 23 – The preferred market saw a large amount of volume to begin the week as companies post first-quarter numbers.

AT&T Inc.’s preferreds fell as it tries to counter the Department of Justice in two separate antitrust probes.

Ally Financial Inc.’s preferreds were down as the company announced leadership changes to its auto finance, insurance and risk management divisions.

Allstate Corp.’s $500 million of $25-par 5.625% series G perpetual preferred shares slid.

AT&T’s 5.35% global notes due 2066 began the week lower. The company had been the focus of the market for its antitrust trial against the Department of Justice over its attempted merger with Time Warner.

Then last Friday, the DOJ opened a second antitrust probe against the company, alleging that it had cooperated with Verizon to make it difficult for consumers to switch cell phone carriers.

With about 268,000 shares changing hands, the preferreds were down 10 cents to close at $24.80.

Meanwhile, Ally Financial’s 8.125% fixed-to-floating rate trust preferred securities were off. Recently the company announced leadership changes to its auto finance, insurance and risk management divisions.

The company also recently declared a dividend for its commons stock.

The preferreds, trading about double its average volume at 404,000 shares, fell 9 cents to close at $26.46.

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