AT&T, T-Mobile temporarily withdraw bid for FCC merger approval
November 24, 2011
Acknowledging the mounting difficulties in obtaining government consent for their merger, AT&T Inc. and the parent company of T-Mobile USA Inc. said Thursday they had temporarily withdrawn their application to the Federal Communications Commission and will focus first on battling the Justice Department for approval of the deal.
AT&T also said it expected to take a pretax accounting charge of $4 billion in the fourth quarter of this year "to reflect the potential breakup fees" it must pay to T-Mobile parent Deutsche Telekom AG of Germany if the deal doesn't get regulatory approval.
The moves highlight the growing unlikelihood the huge telecommunications deal ever will be consummated.