AT&T snaps up US arm of T-Mobile

 
Steve Dinneen
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AT&T will buy the US arm of T-Mobile in $39bn (£24bn) deal that will see Deutsche Telekom receive around eight per cent of AT&T’s equity and $25bn in cash.

The deal will give AT&T an extra 34m customers, making it the biggest network in the US and surpassing bitter rival Verizon, in which Vodafone has a stake.

It is understood AT&T can increase the cash component of the deal as long as Deutsche Telekom accepts at least five per cent of AT&T’s shares. A Deutsche Telekom executive will join the AT&T board as part of the deal.

The announcement will mean a bumper payday for AT&T’s advisers Greenhill, JP Morgan and Evercore Partners. The deal is not expected to fully close for another 12 months.