AT&T is reportedly considering whether to divest up to 40% of T-Mobile USA’s assets in order to save its US$39bn acquisition of the company. According to a Bloomberg report citing a person familiar with the situation, AT&T is considering a revised…
AT&T is reportedly considering whether to divest up to 40% of T-Mobile USA’s assets in order to save its US$39bn acquisition of the company.
According to a Bloomberg report citing a person familiar with the situation, AT&T is considering a revised remedy proposal to the Department of Justice that would offer a larger divestment of T-Mobile assets than had been expected initially.
The source reportedly said that the size of the disposals had not been determined, but that it could be as high as 40% of T-Mobile USA’s assets. Such remedies are likely to involve a divestment of more customers than planned initially, but a lower percentage of spectrum, the report claimed.
Deutsche Telekom declined to comment, citing company policy. AT&T was not immediately available before the press deadline.
On Thursday last week, AT&T and Deutsche Telekom withdrew their applications to the FCC for approval of AT&T’s proposed acquisition of T-Mobile USA.
The move was a reaction to the decision earlier in the week by FCC chairman Julius Genachowski to ask for a legal review of the deal.
In a statement on Friday, AT&T’s senior executive VP and general counsel, Wayne Watts, dismissed reports that the FCC had to approve the withdrawal of its application.
“This is not accurate. The FCC’s own rules give us this right and provide that the FCC ‘will’ grant any such withdrawal,” he said.
