"Given the U.S. Federal Communications Commission (FCC) staff opposition to the proposed AT&T merger with T-Mobile USA, it's fair to ask: Is the $39 billion deal dead? And if that's true, what happens to T-Mobile? Or to AT&T, which could face a multi-billion dollar penalty payment to T-Mobile if it walks away from the deal?" Matt Hamblen asks for Computerworld.
"AT&T said it was disappointed with the FCC position and is 'reviewing all options,'" Hamblen reports. "The Communications Workers of America union, which backs the merger, called the FCC's move a "job killer at a time of 9% unemployment."
Hamblen reports, "Given the doubling of legal hurdles the merger faces, some analysts and experts think AT&T could walk away from the merger. But that would expose AT&T to a "walk-away" fee of potentially $6 billion in cash and spectrum rights it would be required to pay to T-Mobile under terms of its merger proposal… Gartner analyst Michael Gartenberg said AT&T won't give up easily. 'AT&T will play to the final straw,' he said. 'They'll probably take it all the way to the end. If AT&T doesn't go ahead, it owes T-Mobile billions.'"
Read more in the full article here.
[Thanks to MacDailyNews Reader "Lynn Weiler" for the heads up.]
Related articles:
U.S. FCC seeks review of AT&T merger with T-Mobile USA – November 22, 2011
Verizon CEO McAdam: AT&T should be allowed acquire T-Mobile USA – September 22, 2011
U.S. DOJ won't explain decision to challenge AT&T's purchase of T-Mobile USA – September 21, 2011
Sprint files lawsuit to block proposed AT&T and T-Mobile USA transaction – September 6, 2011
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