Nov 24, 2011

AT&T Pulls T-Mobile Offer

Logo of the United States Federal Communicatio... Image via Wikipedia Many already expected it, but nobody really believed it will happen. AT&T pulls the offer to buy T-Mobile USA.

This will not only prevent from getting the largest network in the US, but also chimes in the break up fees. And those are no cupcakes.
The pull happens after AT&T seeking to wait for the regulatory approval before holding to that offer. Signs were getting stronger recently that this buy will not be approved. FCC Chairman Julius Genachowski said this week, that he sees no benefit for the american people in this buy.

AT&T writes on their own site, that the pretax will be charged with the break up fee. If this serves the american public? I don't know...
AT&T and Deutsche Telekom Continue to Pursue Sale of DT's U.S. Wireless Assets: "As a result of the FCC’s action, AT&T expects to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval."

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