(Bloomberg) — Elliott Management Corp. disclosed a new $3.2 billion position in AT&T Inc. and outlined a plan that it argues could see the telecommunications giant trading at $60 a share or more, a more than 50% gain from current levels.The New York hedge fund, run by billionaire Paul Singer, outlined a four-part plan for the company in a letter to its board Monday. The plan would call for the company to explore divesting assets including DirecTV, the Mexican wireless operations, pieces of the landline business, and others. It focuses on increased strategic focus, improved operational efficiency, a formal capital allocation process, and enhanced leadership and oversight.AT&T shares surged as much as 7.8% to $39.09 in early trading. If those gains hold into regular trading, it would be the highest the stock has reached since early 2018.An AT&T spokesman had no immediate comment.Elliott’s plan also calls for aggressive cost-cutting measures that aim to improve AT&T’s margins by 300 basis points by 2022. Elliott said in the letter it has identified opportunities for savings in excess of $10 billion but the plan would only require cost cuts of $5 billion.Elliott is also calling for a series of governance changes, including separating the role of chief executive officer and chairman — currently held by Randall Stephenson — and the formation of a strategic review committee to identify the opportunities at hand.To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Crayton HarrisonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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