AT&T could face a charge of $4 billion dollar on collapse of merger deal
AT&T reported that it withdrew application to takeover T-mobile from the Federal Communications Commission. However, the company is planning to work on winning the antitrust lawsuit produced by the Department of Justice.
This statement of the charge came after the U.S. Justice Department challenged the takeover of T-Mobile USA by AT&T. From Bloomberg,
The Justice Department sued to block the transaction in August, saying a combination of AT&T and T-Mobile would eliminate one of four national U.S. wireless carriers and hamper competition. A person close to the transaction said this week that FCC Chairman Julius Genachowski would ask commissioners to send the proposed takeover for a hearing before an agency judge.
AT&T could face cost of $4 billion this quarter, if the $39 billion bid for T-Mobile USA collapse. AT&T said in a statement that $3 billion would be in cash and $1 billion in book value of spectrum.
AT&T Inc. and [T-Mobile parent company] Deutsche Telekom AG are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia … or alternate means. As soon as practical, AT&T Inc. and Deutsche Telekom AG intend to seek the necessary FCC approval.