AT&T Agreed To Pay T-Mobile $3 Billion If Deal Fails

Posted Mar 22, 2011

If AT&T Inc. (NYSE:T) is unable to buy T-Mobile USA for $39 billion due to regulatory concerns, then there will be another way that AT&T loses. AT&T will have to pay $3 billion, provide promised valuable spectrum, and a roaming agreement to T-Mobile. ?In the event the transaction does not receive regulatory approval satisfactory to AT&T and the transaction does not close, AT&T will be required to pay a breakup fee of $3 (billion), transfer to T-Mobile certain AWS spectrum that is not needed by AT&T for its initial LTE roll out, and provide a roaming agreement to T-Mobile on terms favorable to both parties,? stated AT&T. [AllThingsD]