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Mergers and Acquistions News

Categories: Software

May 16th 2011, 14:40PM

An acquisition deal between telecoms company AT&T and Deutsche Telekom may incur record break-up fees if regulators continue to reject a proposed takeover.

Official bodies have accused the deal, which would see AT&T take over the American Arm of Deutsche Telekom, uncompetitive, as it would produce a wide monopoly and could push prices up for consumers.

US Attorney General Eric Schneiderman announced in March that he would launch an investigation into the $39 billion (£24.3 billion) deal.

Now, Deutsche Telekom has announced that the communications giant would provide the company with break-up fees and benefits of up to $6 billion if problems continue.

A company spokesman said: "$3 billion would flow directly in cash, but Deutsche Telekom would also receive spectrum and a national roaming agreement. The company did not put a value on that, but according to analysts' estimates the spectrum and roaming agreement would amount to $3 billion."

According to Reuters the deal still needs approval from the US telecommunications regulator, the Federal Communications Commission and the Department of Justice, but Rene Obermann, chief executive officer of Deutsche Telekom, said he was confident the deal would be completed in the first half of next year.
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