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Thursday, November 24, 2011

AT&T to Take $4 Billion Charge for T-Mobile Deal -

AT&T Inc. signaled for the first time Thursday that its $39 billion acquisition of T-Mobile USA is more likely to fail than to succeed, saying it will set aside $4 billion in this year's final quarter to cover the cost of breaking up the deal.

The move came after Federal Communications Commission Chairman Julius Genachowski said this week he would seek a rare, trial-like hearing on the merger, a blow that would add months of arguments and another big hurdle for the controversial deal.

AT&T and T-Mobile parent Deutsche Telekom AG responded Thursday by pulling their application for merger approval at the FCC in order to focus on their fight with the U.S. Justice Department, which itself has sued to block the acquisition.

Both agencies need to clear the merger.

AT&T to Take $4 Billion Charge for T-Mobile Deal -

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