There has been some talk among recently Presidential Candidates about how they would like to break up the Oligopolies of telecom providers in the United States if they are elected in 2020.
Let's say I own stock in Telecom Company A, which controls approximately 35% of the market, and has a stock value of $100/share. In 2020, a new President is elected, and they follow through on their plan to break up these telecom providers into smaller pieces. Telecom Company A is now in 3 pieces of roughly equal size, with each piece now competing.
What (in theory) happens to my $100 share in the original, non-broken-up company? Will some part of the split company retain the name "Telecom Company A" as well as my complete share, now worth significantly less? Will my one stock split into three, with each one (theoretically) valued in such a way that all of them add up to $100 at the start of the split? Will this all depend on what actions Telecom Company A takes moving forward?
I found this article on how Bell handled splitting into the Baby Bells in 1982 that may or may not still be relevant. It looks like shareholders were given a proportional share in each of the baby bell companies for their stock. I'm not entirely certain what that means (IE if I owned 1 share out of 300 million shares in Bell, how many do I own in AT&T if it has 100 million shares? Or did AT&T need to have 300 million shares to ensure proportionate distribution?) I'm also not certain if that's still how this would be handled; Bell voluntarily broke themselves up after they became certain that they would lose an anti-trust lawsuit. Today's telecom companies might choose to fight such a lawsuit out, and their break-up would be handled by the Government as opposed to the individual companies, which could mean a different course of action.