8-K

                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                                    Form 8-K


                                 CURRENT REPORT



                         Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


                        Date of Report: December 18, 1997



                                   AT&T CORP.


A New York                      Commission File                  I.R.S. Employer
Corporation                        No. 1-1105                     No. 13-4924710




            32 Avenue of the Americas, New York, New York 10013-2412


                         Telephone Number (212) 387-5400






Form 8-K
AT&T Corp.
December 18, 1997


Item 2.  Acquisition or Disposition of Assets.

         See Exhibit 99 to this Form 8-K.

Item 7.  Financial Statements and Exhibits.

         (b)   Pro Forma Financial Information.

               Please see the Pro Forma Financial Information filed under Item 5
               to AT&T  Corp.'s Quarterly Report on Form 10-Q for the  quarterly
               period ended September 30, 1997.

         (c)   Exhibits.

               Exhibit 99     AT&T Corp. Press Release issued December 18, 1997.






Form 8-K
AT&T Corp.
December 18, 1997



                                   SIGNATURES



     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                   AT&T CORP.




                                   /s/  Marilyn J. Wasser
                                   --------------------------------
                                   By:  Marilyn J. Wasser
                                        Vice President and Secretary



December 18, 1997






                                  EXHIBIT INDEX




Exhibit
Number

99       AT&T Corp. Press Release issued December 18, 1997

EX-99

                                                                      Exhibit 99
FOR IMMEDIATE RELEASE
December 18, 1997

                Citibank Acquires AT&T Universal Card Services,
                   Establishes Cobranding Agreement with AT&T

New York -- Citibank and AT&T Corp.  announced today that Citibank has agreed to
purchase AT&T Universal Card Services for $3.5 billion in cash. In addition, the
companies signed a 10-year cobranding and joint marketing agreement.

The acquisition, subject to regulatory approval, has been approved by the boards
of both companies, and is expected to close by the 1998 second quarter.

With the  acquisition of the AT&T card business,  which was launched in 1990 and
is now among the top 10 U.S. card issuers,  Citibank strengthens its position as
the leading credit card issuer,  adding $15 billion in customer  receivables and
13.6 million  accounts to its own U.S. totals of $46 billion of card receivables
and 24.9 million  accounts,  for a combined $61 billion of receivables  and 38.5
million card accounts in the United States.

AT&T had announced its intention to sell the credit card business as part of its
aggressive effort to ensure that AT&T's portfolio  includes only businesses that
are strategically  central to its core communications  services operation.  AT&T
Universal  Card Services is  headquartered  in  Jacksonville,  Florida,  and has
facilities in Salt Lake City,  Utah, and Columbus,  Georgia.  Upon completion of
the  transaction,  these offices and the company's  4,000  employees will become
part of Citibank.

Citibank's  Alvaro de Souza,  Executive Vice President,  North America  Consumer
Business,  said:  "AT&T, a world  recognized  brand with  extraordinarily  loyal
customers,  in  combination  with  our  own  strong  Citibank  brand  will  be a
tremendous force in delivering value to customers."

Citibank's  strategy,  Mr. de Souza said, is to aggressively expand its consumer
businesses  both  through  its  own  internally  generated  growth  and  through
strategic partnerships and alliances with other global brands. "In the past year
we have  formed  alliances  with a number of  companies  to broaden our reach in
serving consumers in the U.S. market and abroad. As the card industry  continues
to consolidate,  cobranding with  exceptionally  strong global branded companies
will differentiate Citibank's offerings from those of its competitors."

"We view this  agreement as the marriage of two powerful  brands that will offer
tremendous  benefits for all our  customers,"  said Dan Somers,  Chief Financial
Officer  of  AT&T.  "The  cobranding   marketing  agreement  gives  our  company
continuing  participation  in the values we have built into our card,  while the
sale enables us to focus resources in our core operations. Citibank's reputation
for  customer  service,  its  position  as a leading  credit card issuer and its
global reach were  critical  factors in our  selection of Citibank for the joint
marketing relationship."

Citibank said there will be no immediate  changes to the  Universal  card or its
operations.  Universal's  management team, many of whom are former  Citibankers,
will remain,  enabling the combined  operations  to benefit from "best of class"
elements each can offer to the other.

Customers of the Universal card will be provided with uninterrupted  service and
can expect to receive the same  features and benefits that they now receive from
the card.

Citicorp,  the parent company of Citibank,  said that it expects to maintain its
Tier 1 capital  target of a range between 8.0 and 8.3% and to continue to return
excess capital to  stockholders  through the repurchase from time to time of its
common shares.