AT&T hires Wall Street bankers to help it divest of assets if requested by the Feds
According to the WSJ, insiders privy to information about the inner workings of the deal say that based on analysis of the markets where AT&T might be forced to divest assets, $8 billion of pipeline or more might have to be sold. These same insiders say that any forced selling would come just before the deal were to be completed in early 2012, and would mostly be network infrastructure currently belonging to T-Mobile. AT&T says that the T-Mobile deal is necessary to overcome an alleged shortage of spectrum. AT&T also says that without the T-Mobile purchase, it might stop its 4G- LTE build out to 80% of the U.S. population instead of the 97% it plans on covering if the deal closes.
Opponents of the deal, like Sprint, say that no matter how much of the combined network AT&T divests, the deal is anti-competitive as it would give AT&T a huge majority of the cellular industry making it harder for other firms to attract customers and offer the best handsets. So far, the FCC has had a poker face and has not tipped its hand. Most believe the agency would agree to the deal with some conditions likely. Joining Sprint has been some public advocacy groups and the Senate's anti-trust leadership along with former comic, Senator Al Franken.
1. downphoenix (Posts: 2892; Member since: 19 Jun 2010)
looks like AT&T is up to some crooked s***. Not surprising.
2. TheBrizz (Posts: 18; Member since: 24 Sep 2010)
Um, where in this article is there any implication that there is anything "crooked" or underhanded going on? It's common practice that when wireless carriers merge, there is a divestiture of some of the assets in certain markets.
4. Oaklich (unregistered)
Um, where anywhere does it NOT say AT&T is "crooked" to begin with?
Nothing like letting an overgrown company that treats their customers horribly buy another company, inherit their customers, and let them get bigger so nearly everyone becomes miserable.
Forget what you heard, this deal is a train-wreck waiting to happen (should it go through).