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AT&T Inc. and Deutsche Telekom AG, the parent of T-Mobile, have withdrawn their applications with the Federal Communications Commission (FCC) after the agency's chairman moved to thwart AT&T's acquisition of T-Mobile USA.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

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...
 
The upsetting breaking news for India
Published by Nidhigupta on July 23rd 2012 | Business
In this competitive world, it has become compulsory to keep ourselves updated with all the current e...
 
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...
 
How latest world news matters to every individual
Published by Nidhigupta on July 10th 2012 | Business
The importance of latest world news has now been understood by all. Every person after going through...
 
Get updates about world news
Published by Nidhigupta on May 12th 2012 | Business
How much ever we deny it the fact is that the whole world is connected to each other and any event t...
 
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...
 
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 ...
 
Get updated about latest state news.
Published by Nidhigupta on May 15th 2012 | Business
Approximately, today, India's population is around 121 crore. Every second of every day, several eve...
 
Dawn of the online news era
Published by Nidhigupta on May 18th 2012 | Business
Everyone is keen on knowing what is happening around the world. Every minute something new is happen...
 
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...
 
The benefits and drawbacks of international news
Published by Nidhigupta on July 7th 2012 | Business
International news is projected in different countries in different languages. There are various tel...
 
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...
 
The benefits of world news
Published by Nidhigupta on June 18th 2012 | Business
The world is coming closer and closer day by day thanks to the latest innovations in science and tec...
 
The country has come together with the state news of India
Published by Nidhigupta on July 11th 2012 | Business
We all understand that it is essential to have proper news not just about the country as a whole but...
 
The progress India news has made today.
Published by Nidhigupta on June 4th 2012 | Business
We all know that there are a number of sources like TV, radio, internet, newspapers, etc via which t...
 
Stay tuned to the latest India news
Published by Nidhigupta on June 21st 2012 | Business
Nowadays, breaking news has become a state of art. If not delivered fresh, it may become stale the ...
 
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...
 
Get all the agricultural news through Punjab online news
Published by Nidhigupta on July 13th 2012 | Business
Who is not aware of the state of Punjab!!! Even the foreign countries are very well aware about this...
 
The importance of Bihar news in India
Published by Nidhigupta on June 1st 2012 | Business
Bihar is a state that lies in the eastern part of India. It is one of the oldest inhabited places in...
 
Access latest entertainment news easily
Published by Nidhigupta on July 12th 2012 | Business
People are always interested to have news about the entertainment world. Who does not wish to have a...