Is AT&T proposing concessions to secure T-Mobile acquisition?
As AT&T reeled from the news that the FCC has filed to reject its proposed acquisition of T-Mobile USA, reports today are suggesting the company is to present the US regulator with an alternative offer to ensure the deal goes through.
AT&T had already confirmed late last week that it plans to go to court over the decision, and now market rumours are persisting the company will offer concessions to its original proposal to reach a settlement. US regulators are moving to reject the deal on the grounds that an acquisition of T-Mobile USA, worth $39 billion would prove anti-competitive and cause wireless prices to increase.
Details of AT&T’s alternative plan were not available, but Reuters newswire suggests the company is prepared to sell up to 25% of T-Mobile after securing the deal, including airwaves and customers to keep up with government provisions.
Potential buyers in a T-Mobile stake are already being named, and if Verizon or Sprint express an interest in an AT&T owned stake in T-Mobile it could create another round of antitrust scrutiny, according to a Reuters source.
If AT&T fails in its potential law suit, or its altered proposal, it will still have to pay Deutsche Telekom, T-Mobile’s parent company up to $6 billion, as part of a concession made in its original deal.