AT&T says T-Mobile deal isn't dead yet, but sets aside $4B for break-up fee

AT&T has withdrawn its merger application at the FCC but will still seek approval for the deal in a court case with the DOJ

AT&T will continue to seek antitrust clearance for its merger with rival T-Mobile USA, it said Thursday. However, to reflect the break-up fee it will have to pay T-Mobile's owner Deutsche Telekom if the deal does not get regulatory approval, AT&T expects to recognize a US$4 billion [b] accounting charge in the fourth quarter.

Deutsche Telekom and AT&T have withdrawn the license transfer applications they filed with the U.S. Federal Communications Commission, and will instead concentrate on defending against a lawsuit filed by the U.S. Department of Justice in August to block the deal, AT&T said.

The FCC found AT&T's proposed $39 billion acquisition of T-Mobile USA to be contrary to the public interest, according to a draft order circulated Tuesday. Withdrawing the applications to the FCC now will "facilitate the consideration of all options at the FCC," AT&T said, adding that the companies intended to seek FCC approval for the deal "as soon as practical."

That setback aside, AT&T and Deutsche Telekom haven't given up on the deal eventually getting regulatory approval.

They will now focus their efforts on obtaining antitrust clearance from the Department of Justice, either "through the litigation pending before the United States District Court for the District of Columbia or alternate means," according to the statement, which didn't elaborate on what those means would include.

AT&T plans to recognize a pre-tax charge in the fourth quarter to reflect "the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval," T-Mobile said. It includes $3 billion in cash and spectrum valued at $1 billion.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesCarrierstelecommunicationat&tAT&T WirelessT-Mobile USAdeutsche telekomMergers and acquisitions

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?