Happy Thanksgiving, while this doesn’t mean the proposed deal is dead. but it looks like the proposed merger is on its death bed. What a great way to start Thanks giving. Which also means AT&T has to cough up $4 billion to T-Mobile as part of their merger agreement if the deal goes belly up.
Deutsche Telekom and AT&T withdrew their application for approval by the Federal Communications Commission of a planned $39 billion deal for T-Mobile USA to focus on obtaining the green light from the Department of Justice.
At the same time, AT&T said on Thursday it expected to book a pretax $4 billion charge in this quarter for potential break-up fees, should the deal collapse.
“This formal step today is being undertaken by both companies to consolidate their strength and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice,” the companies said in a statement.
They added that they are continuing to pursue the sale of T-Mobile USA to AT&T.
The withdrawal follows after the Federal Communications Commission said earlier this week it planned to send the deal to an administrative law judge for review.
Via Reuters
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