Dallas-based AT&T is dropping its plan to buy back $4 billion in stock over the next three months as the coronavirus pandemic reignites criticism of Fortune 500 companies' repurchasing practices.
In a regulatory filing Friday, the company said canceling its buyback agreement will allow it to "focus on continued investment in serving our customers, taking care of our employees and enhancing our network, including nationwide 5G."
On March 3, AT&T announced an agreement with Morgan Stanley to repurchase $4 billion in common stock during the second quarter of 2020.
Last year, activist investor Elliott Management took a $3.2 billion position in AT&T, pressuring the company to divest assets, stop making acquisitions, pay higher dividends and buy back shares in order to increase value for shareholders.
The Communications Workers of America, a union that represents thousands of AT&T employees, has been critical of the activist investor's sway over AT&T leadership and the prospect of stock repurchases.
And outside of unions, public sentiment toward stock repurchases has shifted considerably since coronavirus began to heavily impact the U.S. economy this month.
At a press briefing Friday, President Donald Trump said he would "demand" that companies receiving government aid refrain from buybacks. Democratic presidential candidate Joe Biden tweeted Friday morning and urged all major companies to halt stock buybacks for the remainder of the year.
AT&T bought back $4 billion in shares in January, according to its annual report. The company also bought back more than $2.1 billion in shares last year.
