The spinoff plan may take a year to put into effect.

Merck withdrew the spinoff plan last summer as stock market prices declined broadly.

The board must yet decide whether to approve a definitive spinoff plan, which is expected to be completed by the end of the year.

Another choice for AT&T would be to proceed with its original spinoff plan.

It seems far less likely that AT&T will try to go ahead with its original spinoff plan.

The spinoff plan is subject to Internal Revenue Service approval.

Castle & Cooke said recently that the spinoff plan had been delayed by tax considerations and by a lack of financing for real estate companies.

The spinoff plan is not at an advanced stage, said one person close to the group, who demanded anonymity.

The spinoff plan was first reported yesterday in The Wall Street Journal.

Mr. Scrushy said in a phone interview that lawyers had advised him not to take questions because of the spinoff plans.