Home free?

January 31, 2005

One of the countless details that will surely be worked out as SBC Communications (SBC) moves forward with its $16 billion acquisition of AT&T (T) is what to do with a pricey piece of Atlanta real estate. Although AT&T Chairman and CEO David Dorman took the helm of the company in December 2000, he’s been reluctant to part with his luxe home, described by the Atlanta Business Chronicle as a 5-bedroom 7.5 bath mansion in Atlanta’s trendy Buckhead area. After several extensions that saw AT&T paying increasingly more money for Dorman’s New York area accomodations — $12,000 a month at last count for a penthouse overlooking Central Park — AT&T gave Dorman until this past July to sell the house. To sweeten the pot, they agreed to pay him an incentive equal to 1 percent of the selling price if the house was sold by July 1. If the house didn’t sell, AT&T agreed to buy the house for the appraised value of $2.975 million. A quick scan of mansions for sale in Buckhead shows that there is a 5 bedroom, 7.5 bedroom house currently on the market for $3.4 million, which could be Dorman’s old digs. Or he could have gotten another extension from AT&T that has yet to be disclosed, in which case, it will soon become SBC’s problem to deal with.

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