AT&T: T-Mobile acquisition on track for March 2012 approval

By on June 22, 2011, 1:30 PM

AT&T says it is still on track to have its acquisition of T-Mobile approved by March 2012. Resistance to the merger has been growing in recent weeks, but the company insists everything is going smoothly. AT&T General Counsel Wayne Watts said the company has provided a second round of information requested by the Justice Department and that meetings with the Federal Communications Commission (FCC) are also going as scheduled.

"The number one question I get from investors is can we get (the deal) done," Watt recently told reporters according to The Washington Post. "I think we can." Watts also said that the regulators' review of the deal thus far had been thorough, fact-based, and "exactly as we expected."

AT&T has reportedly promised to give Deutsche Telekom $6 billion in assets, services, and cash as a break-up fee if US regulators reject the deal. The $6 billion would include $3 billion of cash, about $2 billion worth of spectrum, and a roaming agreement valued at $1 billion.

Three months ago, AT&T announced that it had entered into a definitive agreement to acquire T-Mobile from Deutsche Telekom in a cash-and-stock transaction valued at approximately $39 billion. The acquisition of T-Mobile, the fourth largest carrier in the US, would enable AT&T, currently the second largest US mobile service, to leapfrog the leader of the US market, Verizon Wireless, a venture of Verizon Communications and Vodafone Group.

Furthermore, AT&T and Verizon Wireless would hold 79 percent of the US market if regulators approved the deal, leaving Sprint Nextel as an even weaker number three player in the US. Unsurprisingly, Sprint is doing everything in its power to appeal the huge deal.

User Comments: 8

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Zilpha Zilpha said:

They might not want to count their cash too quickly. I'm leaving T-Mobile over this as we speak and moving to another carrier. I'm betting once good ol Ma Bell gets hold of our contracts prices are going to go up. It will be subtle, but it will be there.

Muggs said:

It won't matter soon it will be big blue or big red and they will be doing the same nickle and dime poisoning of the market.

howzz1854 said:

my question is, who is regulating the regulators who hold the key to the merger. i am not saying that's what's happening, but it seems pretty stinking easy for those regulators to be bribed.

howzz1854 said:

just pointing out the obvious

Muggs said:

howzz1854 said:

just pointing out the obvious

Between big business and the current government trend for a nanny state this does not bode well for the consumer or individual.

Trillionsin Trillionsin said:

is that suppose to resemble the death star?

Sorry not a big star wars fan here.

KG363 KG363 said:

It shouldn't be so hard to buy a damn company

Guest said:

Given that the combined company would control over 99% of the GSM market, this means that the deal would result in a monopoly for GSM and duopoly for everything else. This is EXACTLY why anti-trust laws were created -- to prevent a single company controlling everything.

Wouldn't the combined company of AT&T and T Mobile be larger than ma bell when it was broken up? Just asking...

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