AT&T gives U.S. regulators a reason to block Softbank-Sprint deal

When AT&T was trying to buy T-Mobile, one of the loudest opponents of the deal was Sprint. The nation's third largest carrier was happy when AT&T decided to give up on the proposed $39 billion deal. Now that the shoe is on the other foot, and it is Sprint on the receiving end of a $20.1 billion bid from Japan's Softbank, it is none other than AT&T making comments about Softbank's 70% purchase of Sprint with a rather loaded three sentence statement. Payback? Revenge?

While AT&T isn't coming right out and saying it objects, the statement is basically a blueprint for the regulatory agencies, giving them a huge reason to block the acquisition. In the statement, AT&T discusses how Softbank, a foreign company, would own more spectrum than any U.S. carrier once the deal closes. AT&T says that it expects that fact to lead to a thorough examination by the agencies. Both U.S. and Japanese telecom regulators will have to sign off on the deal and it will be interesting to see if the DOJ and the FCC play just as hard with Sprint as they did with the proposed purchase of T-Mobile by AT&T. And don't forget, there is also the T-Mobile/MetroPCS reverse merger that will still need approval from the Feds.


source: SlashGear