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AT&T gives up on its $39bn takeover
AT&T has agreed to drop its $39bn (£25bn) takeover bid for T-Mobile USA after running into a regulatory brick wall.
AT&T said in a statement yesterday that it will enter a roaming agreement with T-Mobile’s German owner Deutsche Telekom instead.
Prospects for AT&T’s plan to buy the firm, first announced in March, have been dwindling since the US Department of Justice and telecoms regulators voiced objections.
In late November AT&T said it would take a $4bn charge in case the deal collapsed.
The charge is part of a break-up fee agreement, giving Deutsche Telekom a cash payment of $3bn, roaming services agreement and mobile licences for T-Mobile USA.