AT&T to take USD 4 bln charge for T-Mobile deal

News Wireless United States 24 NOV 2011
AT&T to take USD 4 bln charge for T-Mobile deal
AT&T announced plans to take a charge of USD 4 billion for eventual costs if its takeover of T-Mobile USA does not go through. The pretax accounting charge of USD 3 billion cash and USD 1 billion book value on spectrum will be taken in the fourth quarter to reflect the potential break-up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval. This follows a statement from the FCC that it plans to call a full hearing to review the transaction, where the regulator will decide if the deal is in line with the public interest. This comes in addition to the US Department of Justice anti-trust case against the takeover. AT&T and Deutsche Telekom said they are still pursuing the deal, but have withdrawn their request for FCC clearance, filed in April. At the moment they will focus on securing DoJ approval, either through the court case expected to start in February or an alternative settlement. The companies will seek FCC approval "as soon as practical" thereafter.

Categories:

Mobile

Companies:

FCC,  T-Mobile USA,  Deutsche Telekom

Countries:

United States

Tags:

Regulations, Wholesale, Finance, M&A buyouts & divestments

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