AT&T’s preferreds head lower amid CEO testimony, stalled IPO; Allstate weakens

By James McCandless

San Antonio, April 18 – The preferred market saw higher volume on Wednesday, traders reported, as the broader market was mixed.

AT&T Inc.’s preferreds fell as its South American IPO was postponed and executives testify in its antitrust trial.

Allstate Corp.’s $500 million issue of $25-par 5.625% series G perpetual preferred shares traded down in high volume.

Citigroup Inc.’s preferreds were lower as the company prepares for its annual shareholder meeting next week.

AT&T’s preferreds fell on Wednesday as its antitrust trial against the Department of Justice over its attempted merger with Time Warner continues. Time Warner CEO Jeff Bewkes testified that the merger is a necessity in order to compete against other large internet companies.

The company also delayed an IPO on Wednesday for its South American business, facing investor pressure to downsize the offering.

On the lower end of its average volume with about 237,000 shares trading hands, the preferreds lost 6 cents to close at $24.98.

Meanwhile, Allstate’s series G preferreds fell on Wednesday against general market weakness. The preferreds outpaced its normal volume with about 259,000 shares traded.

The preferreds lost 10 cents to close at $25.25.

The Wells Fargo Hybrid & Preferred Securities Financial index fell 0.01%, climbing back up after being down 0.08% Wednesday morning.

The iShares US Preferred Stock ETF closed up 4 cents to end at $37.34.

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