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AT&T Inc. and Deutsche Telekom AG, the parent of T-Mobile, have withdrawn their applications with the Federal Communications Commission (FCC) after the agency's chairman moved to thwart AT&T's acquisition of T-Mobile USA.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

Stay informed about India news
Published by Nidhigupta on May 17th 2012 | Business
There are many leading and supporting web portals of news channels in Hindi online. There are many m...
 
The world is inching closer thanks to the world news
Published by Nidhigupta on July 6th 2012 | Business
World news refers to the news which is international. It deals with the subjects and issues at an in...
 
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...
 
Keep yourself posted with the latest world news
Published by Nidhigupta on June 28th 2012 | Business
Today, any kind of top world news is made available to you at your doorstep thanks to the latest inn...
 
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 ...
 
Store t-shirts, cheap and silkscreened, large stock of shirts advertising
Published by Cami Setas on May 17th 2012 | Business
Online shop. In our shop you can buy shirts with prints for individuals, companies and teams....
 
Connect to world with international news
Published by Nidhigupta on May 25th 2012 | Business
It is crucial for everyone in order to depend on day to use global news. We are able to acquire a gr...
 
Need of current business news
Published by Nidhigupta on May 14th 2012 | Business
A great importance is in the hands of stock market whenever a person decides to invest in stock mark...
 
Read world news and connect yourself with the globe
Published by Nidhigupta on July 26th 2012 | Business
World news basically refers to news which is international. It deals with the subjects and issues at...
 
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 ...
 
International news- then and now
Published by Nidhigupta on June 2nd 2012 | Business
People all around the world are keen on knowing about the issues and matters of every country. Inter...
 
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...
 
Online news is very beneficial
Published by Nidhigupta on June 12th 2012 | Business
Everyone today is keen on knowing about what is happening in their city, across their country, aroun...
 
Outsource stock management and order fulfillment to make your work easier
Published by Diego Hall on December 15th 2011 | Business
A business has many parts and taking car of each part single handedly is impossible, hence outsource...
 
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...
 
Trading precious metal… similar to trade as in stock exchange
Published by Trademetals on June 25th 2012 | Business
Trading precious metals is more than just investing money to buy gold. Talking about the economy inv...
 
Get the neoteric global news now online
Published by Nidhigupta on June 27th 2012 | Business
Global news is featured on the internet. There are plenty of sufficient numbers of news websites and...
 
Need to consult an experienced distribution company to publish industry news releases
Published by Andersonclark on February 6th 2012 | Business
Online has been preferred for publishing business or industry news, simply because the news will spr...
 
Get alerts about today news
Published by Nidhigupta on May 16th 2012 | Business
Online news updates help in getting the newfangled news every time. It is offline as well as online....
 
Online car magazines That’s right get iauto for all the latest in automotive news
Published by James Blee on August 25th 2012 | Business
To find out more about one of the best online car magazines that South Africa has to offer, visit ia...