Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

AT&T withdraws merger application to take 4 Dollar billion charge

By Ritika Sharma Subscribe to RSS | November 27th 2011 | Views:
loading
 
  



AT&T Inc. and Deutsche Telekom AG, the parent of T-Mobile, have withdrawn their applications with the Federal Communications Commission (FCC) after the agency's chairman moved to thwart AT&T's acquisition of T-Mobile USA.

The two telecommunications giants said they were still committed to the merger and were only withdrawing the applications to focus their efforts on winning approval from the Department of Justice (DOJ), which has filed a lawsuit against the takeover.

AT&T, however, said that it would record a charge of $4 billion this quarter to provide for the break-up fees it would have to pay Deutsche Telekom if the transaction does not go through.

Objection to the deal:- Julius Genachowski, chairman of the FCC, had circulated a draft order on Tuesday among other commissioners asking for an administrative hearing on the acquisition, the first step towards blocking the deal.

The move came after FCC officials concluded the acquisition of T-Mobile will shrink competition among wireless carriers, lead to higher prices, less investment, massive job losses and hurt consumer interest.

The deal, viewed as essentially dead by many, would have propelled AT&T to the top spot in terms of market share in the United States.

The DOJ also says that the merger will restrict competition, and has filed a civil antitrust lawsuit at the federal court in Washington to block it. The trial is set to begin in February.

The companies are thought to have made the move to withdraw the applications to prevent the FCC from publicly revealing records of the potential effects of the merger, which could then be used by the DOJ in its suit.

AT&T has claimed its $39 billion takeover of T-Mobile would help create jobs, while FCC officials say the company's confidential filings indicate it would end up cutting jobs.

Death of the deal:- FCC spokeswoman Tammy Sun confirmed that the agency had received the request for withdrawal and will consider it. However, the agency is under no obligation to grant it.

If it chooses not to, the agency can go ahead to the administrative hearing, which analysts say could take more than a year.

Even if FCC grants the withdrawal, it may choose to do so with prejudice, meaning AT&T and T-Mobile will be barred from bringing the deal back to the agency for consideration, effectively killing it.

The deal, viewed as essentially dead by many, would have propelled AT&T to the top spot in terms of market share in the United States. Julius Genachowski had circulated a draft order on Tuesday among other commissioners asking for an administrative hearing on the acquisition, the first step towards blocking the deal.

The New York Times quoted Craig Moffett, an analyst at Sanford C. Bernstein, as saying that the withdrawal of the F.C.C. application “is a tacit acknowledgment by AT&T that this story is all but over.

“The fat lady hasn’t started singing yet, but she’s holding the mike, and the band is about to play.”

Ritika Sharma - About Author:
Here you can get the latest updates about Finance news. Get more details about Finance and investment news .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/management-articles/at-t-withdraws-merger-application-to-take-4-dollar-billion-charge.htm

Related Management Articles Subscribe to RSS

Instant online access to latest news
Published by Nidhigupta on May 15th 2012 | Business
There are various exceptional features of news which a person would find. There are several features...
 
Importance of world news
Published by Nidhigupta on July 24th 2012 | Business
Welcome to the world where lifestyle has become very competitive and fast paced too at the same time...
 
The popularity India news is getting day by day
Published by Nidhigupta on May 28th 2012 | Business
News as we all know is delivered to us by television, radio, internet, newspapers and other forms of...
 
Current news in several forms
Published by Nidhigupta on May 3rd 2012 | Business
Nowadays there is a tight connection in the world. The whole wide world has been turned into a globa...
 
India news gaining lot of attention
Published by Nidhigupta on May 3rd 2012 | Business
Many people might consider India to be a country of the third world. However, very quick development...
 
Learn about various sources that feature breaking news India
Published by Nidhigupta on June 25th 2012 | Business
In India, people are willing to educate themselves with the most recent and latest news about the co...
 
Means for getting top world news
Published by Nidhigupta on May 1st 2012 | Business
The web is responsible for the dealing of the potential energy in the globe. The internet might stan...
 
Time to get the latest university news
Published by Gene Crayton on August 25th 2012 | Business
Education is a never-ending process. Each day you get to learn something new which may or may not be...
 
Do you need to stock up on Ringbinders for your office space?
Published by Mary Porter on June 19th 2012 | Business
One of the most widely used marketing techniques around is the production of ringbinders and folders...
 
Importance of Punjab news in the lives of Punjabi's
Published by Nidhigupta on July 5th 2012 | Business
Since the Punjabi's are such a strong and long rooted family, it is obvious that media plays such a ...
 
Get Top news that woes the World
Published by Nidhigupta on May 7th 2012 | Business
News can be anything that is relevant and interesting to the readers. These days it is important for...
 
Breaking news from the globe
Published by Nidhigupta on May 26th 2012 | Business
It is crucial for everyone in order to depend on day to use global news. We are able to acquire a gr...
 
The latest innovations India news channels have made
Published by Nidhigupta on June 5th 2012 | Business
In India news channels have made a lot of advancements in terms of visuals, reports, surveys almost ...
 
How to start real estate news letter
Published by Dany on April 19th 2012 | Business
Real estate news letter is considered to be an effective advertising and marketing tool for real est...
 
Impact of news in Punjab
Published by Nidhigupta on July 25th 2012 | Business
One of the basic necessities of the modern man: news. Not only it informs us about the happenings ta...
 
Why should businessmen read Indian business news
Published by Nidhigupta on July 2nd 2012 | Business
Since the post-independence period, India's business and trade economy has grown and has flourished ...
 
Different modes for receiving UP news
Published by Nidhigupta on July 9th 2012 | Business
All the events occurred in the state of Uttar Pradesh is covered by the UP news. UP news takes note ...
 
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
 
Aftermarket news- know what’s happening!
Published by Jamessms on January 30th 2012 | Business
If you are into any kind of automotive business, you need to know about what exactly is going on in ...
 
The advantages and drawbacks of entertainment news
Published by Nidhigupta on July 6th 2012 | Business
Today news is considered and is indeed a very strong and the most popular weapon which is used by th...