AT&T May Divest Up to 40% of T-Mobile USA to Gain Approval
Nov 25, 2011, 5:20 PM by Eric M. Zeman
AT&T is preparing to resubmit its proposed acquisition of T-Mobile USA with more divestitures in order to help the deal gain approval, reports Bloomberg. Citing unnamed sources that are familiar with AT&T's plans, Bloomberg says that the company may offer to divest as much as 40% of T-Mobile USA's assets to help convince the Department of Justice that the deal is worthwhile. AT&T is facing a lawsuit from the Department of Justice over the proposal, which says the deal would give AT&T too much power in the market. This week, the Federal Communications Commission said it was considering an order that would send the deal before an administrative law judge. FCC chairman Julius Genachowski said the acquisition would not be in the best interests of Americans. On Thursday, AT&T withdrew its merger application from the FCC, hoping to prevent the government body from finalizing the order. The FCC could dimiss the application outright now that it has been withdrawn, but AT&T is defending its right to withdraw and resubmit a new plan. "We have every right to withdraw our merger from the FCC, and the FCC has no right to stop us," said AT&T General Counsel Wayne Watts in a statement. "Any suggestion the agency might do otherwise would be an abuse of procedure which we would immediately challenge in court." AT&T indicated earlier this week that it would write down a $4 billion charge for the fourth quarter of this year in preparation for the eventual defeat of the acquisition.
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Just more evidence
What is the big deal
You switched to T-Mobile with your iPhone from AT&T for a reason right? Now suppose you never had that option and were stuck on AT&T, and suppose AT&T knew that.
Also Sprint DID want them. Just because Sprint uses CDMA doesn't...
Do people even think before askng a question?
Just 1 Question!
Although I don't think the Verizon/Alltel deal should have happened, either.
This is one of the four nationa...
I run a cell phone trade in company and bad news for me (and my customers) as well.
Hope the gov will see through this and keep them from merging.