AT&T Withdrawing T-Mobile Acquisition Approval Application From FCC
A couple of days ago, I wrote about how the FCC was seeking an administrative hearing of the proposed acquisition of T-Mobile by AT&T Inc. (NYSE:T). Now AT&T and Deutsche Telekom have pulled their application for approval from the FCC for the acquisition. This does not necessarily mean that AT&T is pulling out of the deal. They will be continuing to pursue the sale of Deutsche Telekom’s “wireless assets.”
AT&T decided to also take a $4 billion pre-tax charge on their Q4 2011 accounting sheets in case the deal does fall through. This includes a $3 billion default payment that would be owed to Deutsche Telekom if the deal gets cancelled.
“This formal step today is being undertaken by both companies to consolidate their strength and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice,” said AT&T and DT in a statement.@amitchowdhry or on Google+ at +AmitChowdhry