AT&T Acquisition of T-Mobile Looks Less Likely Than Ever ~ Pare News

Kamis, 24 November 2011

AT&T Acquisition of T-Mobile Looks Less Likely Than Ever

Posted by immunk pare on 05.30

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AT&T and T-Mobile have withdrawn the application for approval of the two companies’ merger from the U.S. Federal Communications Commission, which doesn’t mean they are giving up on the deal, but it makes it unlikely to go through.

The two companies are fighting for approval on two fronts: the FCC as well as the U.S. Department of Justice are opposing the deal, and this latest development means they’ll be fighting for DOJ’s approval first, without which the approval from the FCC would be meaningless.

Furthermore, AT&T said it would record one-time costs of $4 billion this quarter in case the deal falls through.

Although a joint statement from the two companies say they’re “continuing to pursue the sale of T-Mobile USA to AT&T,” some analysts see this latest development as a clear sign the deal is not to be.

“AT&T's auditors have now concluded that the deal is likely to fail and have forced the company to take that charge," Espirito Santo analysts wrote in a note to clients.

AT&T’s intention to purchase T-Mobile has received blows from all sides since its announcement in March 2011, including opposition from the DOJ, the FCC and a lawsuit from Sprint. It hasn’t fallen through completely just yet, but we wouldn’t be too surprised if AT&T gives up on it even before the final Sep. 20 2012 deadline.

[via Reuters]

More About: acquisition, att, merger, T-Mobile

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