Results 1 to 6 of 6
  1.    #1  
    Hi all,

    Due to the way AT&T has structured the proposed buy out, if the deal tanks AT&T is going to be paying thru the nose. The article includes the following paragrpah:

    While the cash agreement is already unusually high at 7.7 percent of the total deal price, the addition of assets and services of a similar value would mean that the companies are breaking global records with a 15.4 percent break-up fee, according to Thomson Reuters Data.

    If the deal goes thru, I expect that AT&T will have to make major concessions all over the place. Either way this deal is going to cost much more than anyone expected.

    Please see the link for the balance of the article.


    take care,

    Jay


    AT&T, T-Mobile USA Break-Up Is $6 Billion: Sources

    By REUTERS, May 12, 2011

    http://www.nytimes.com/reuters/2011/...gewanted=print

    NEW YORK (Reuters) - AT&T Inc has promised to give Deutsche Telekom $6 billion in assets, services and cash as a break-up fee if U.S. regulators reject its proposed $39 billion purchase of the German company's T-Mobile USA, according to sources familiar with the matter.

    The $6 billion would include $3 billion of cash, as AT&T has previously disclosed, and about $2 billion worth of spectrum and a roaming agreement valued at $1 billion, according two sources who asked not to be named as those details were not public.

    While the cash agreement is already unusually high at 7.7 percent of the total deal price, the addition of assets and services of a similar value would mean that the companies are breaking global records with a 15.4 percent break-up fee, according to Thomson Reuters Data.

    The high fee underscores AT&T's confidence that it can convince regulators to approve the deal, which is already being heavily criticized by many consumers and AT&T rivals including No. 3 U.S. mobile service Sprint Nextel.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2. #2  
    So if they break off the deal, does that spectrum gain mean T-mobile can finally start operating on standard US bands instead of that messed up 1700 band?
  3.    #3  
    Quote Originally Posted by Orion Antares View Post
    So if they break off the deal, does that spectrum gain mean T-mobile can finally start operating on standard US bands instead of that messed up 1700 band?
    Hi all,

    I'm not an attorney, but my best guess to your question is yes! So either way for T-mobile it is a win-win situation.

    Take care,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  4. #4  
    If this is true, you can rest assured, AT&T will not screw themselves out of $6billion, including specturm bandwidth - that's pure suicide for the management team, and we all know that they arent fools; they'll try to find a way out of it, somehow.

    Ive already put my formal objection to this merger into the DOJ web site, and even suggested that instead of even considering this merger, that the DOJ consider breaking up all carriers with more than 1/4 of the market share into smaller companies, to assure the best competitive environment possible...

    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  5. #5  
    Quote Originally Posted by LCGuy View Post
    Ive already put my formal objection to this merger into the DOJ web site, and even suggested that instead of even considering this merger, that the DOJ consider breaking up all carriers with more than 1/4 of the market share into smaller companies, to assure the best competitive environment possible...

    I think that's a terrible idea based on what happens with the wired telecoms now. I mean there are a handful of areas with regional wireless carrier monopolies or duopolies but not near the number as exist with the wired telecoms. And trust me, if you have ever lived in an area with a wired telecom monopoly, you would not be advocating a break up of the national carriers. A little tighter regulation after they get above a certain size to keep them from snuffing out the regional carriers might not be bad, but a break up would be terrible.
  6.    #6  
    Hi all,

    Here is a little followup info for all of you.

    Please see the link for the entire article.

    Take care,

    Jay


    Deutsche Telekom Confirms AT&T Break-Up Fee Worth $6 Billion

    By REUTERS, May 13, 2011

    http://www.nytimes.com/reuters/2011/...gewanted=print

    FRANKFURT (Reuters) - AT&T will give Deutsche Telekom a break-up fee and benefits worth about $6 billion if regulators reject the proposed takeover of the German company's U.S. business, Deutsche Telekom said on Friday.

    In March, when the $39 billion deal was disclosed, the companies said AT&T would pay the German group a record break-up fee of $3 billion, but they did not put a value on other parts of the agreement.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group

Posting Permissions