updated 08:50 pm EDT, Thu September 15, 2011
Members voice support for merger
Fifteen Democrat members of the House of Representatives have sent a letter asking President Obama to find a quick resolution to the Department of Justice lawsuit against AT&T's proposed T-Mobile buyout. The group, headed by North Carolina Representative Heath Shuler, argues that a settlement and approval of the deal will have a positive effect on the economy and job creation.
"We recognize that the Department of Justice has intervened in the merger to ensure competitive markets and protect consumers," Shuler wrote. "Addressing these concerns through a settlement agreement that ensures robust competition while preserving the job creation, capital infrastructure investment and wireless broadband deployment benefits of the merger should be the Department's goal."
Sprint quickly countered Shuler's letter, arguing that the acquisition would actually be detrimental to job growth in the US by eliminating "tens of thousands of jobs across the country."
"The flawed economic study embraced by AT&T and its union ignores what Wall Street investors and the Federal Government have been already been promised: that the overall investment for the combined companies will be substantially reduced if the proposed transaction closes," Sprint said.
AT&T and T-Mobile are set to meet next week with a federal judge and the DoJ to discuss potential settlement terms. Even if the companies and the DoJ arrive at an agreement, the buyout still faces a second lawsuit filed by Sprint. [via TmoNews and TheHill]