AT&T pulls out of acquiring T-Mobile
(BDCi) – AT&T is hanging up its bid to take over T-Mobile USA for $29 billion.
The company is calling off the deal, which has hit a series of increasingly serious state and federal roadblocks, and said it would take a $4 billion pre-tax as par of its breakup fee to T-Mobile.
In a news release about the end of the deal, AT&T cited the opposition of the Department of Justice and the Federal Communications Commission, which had opposed the deal on the grounds that it would create a less competitive wireless industry and potentially lead to higher prices for consumers.
The deal’s end comes after a uptick in regulatory and legal action against the acquisition. Late last month AT&T withdrew a crucial clearance application from the FCC and soon after, the Justice Department argued its case to block the deal on antitrust grounds was no longer necessary, as the deal could only go through with FCC approval.
By: Natania Levine Courtesy: latimes.com Photo: modmyi.com 20 December 2011
12:52 p.m P.S.T