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AT&T insists it will keep trying T-Mobile merger

updated 06:25 pm EST, Wed December 7, 2011

Has set aside $10b in anticipation of closing deal

Despite strong opposition from US regulators, AT&T CFO John Stephens asserted that the carrier will keep trying with its proposed acquisition of T-Mobile. At the UBS media conference just held in New York City, he insisted that the carrier would "continue to move forward" in spite of the Department of Justice lawsuit and withdrawing the FCC application. To prepare for the closing of the $39 billion T-Mobile deal, AT&T revealed it plans to use $10 billion cash it has accumulated on its balance sheet.

"We will continue to pursue the sale," he said.

The two involved companies are focusing their efforts on convincing the Department of Justice that the merger should be allowed to go through. The DOJ currently believes that the merger is anti-competitive and violates multiple antitrust laws, with the implication that no amount of concessions would make the deal acceptable.

AT&T has also indicated that it expects to book a pretax $4 billion charge in the fourth quarter for a break-up fee that it must pay to T-Mobile should the deal fall through. US general accounting rules typically only require this of a company if it sees a less than 20 percent chance of a deal being completed. [via Reuters]



By Electronista Staff
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Comments

  1. Inkling

    Dedicated MacNNer

    Joined: Jul 2006

    +1

    Billions for Coverage & Service

    "To prepare for the closing of the $39 billion T-Mobile deal, AT&T revealed it plans to use $10 billion cash it has accumulated on its balance sheet."

    Imagine where AT&T would be if it had spent that $10 billion--or the $39 billion it planned to spend to acquire T-Moblie--on adding more cell towers or improving customer service. It's wouldn't be at the bottom of Consumer Report's customer satisfaction survey.

    As a T-Mobile customer, I'm one happy guy this merger seems to be collapsing.

  1. facebook_Jeff

    Via Facebook

    Joined: Dec 2011

    0

    Hmmm....

    I guess beating a dead horse is sport nowadays?

  1. mytdave

    Fresh-Faced Recruit

    Joined: Aug 2000

    +1

    needs to happen

    Having watched this progress, I've finally formed an opinion (I don't just jump into things without thinking it through). This merger needs to happen. Having been a former T-Mobile customer, and being a current AT&T customer, they need each other desperately. T-mobile's coverage sucks (the only reason I left them), but AT&T needs T-Mobile's customer service and marketing desperately.

    AT&T has the best network speed, but they need more coverage. Combining the infrastructure of the two companies will finally give the US a cellular company that will have tower density high enough to actually have the system work properly, and at the same time be responsive and nice to its customers (AT&T better promise to adopt T-Mobile's customer service model - the DOJ should say "okay" by making that a requirement of the deal).

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