Wednesday, June 1, 2011

AT&T Bid for T-Mobile USA in Trouble?

AT&T officials deny that there is any growing opposition to the proposed acquisition of T-Mobile USA beyond the expected cast of characters. But some observers are not so sure. At the very least, a tougher than expected fight is expected. Others think the odds the deal might actually fail to gain regulatory approval are growing.

That would cost AT&T a significant amount of money and spectrum. It also would put T-Mobile USA into a difficult position, as it would have spent a year doing very little to maintain its business as a going concern.

If the deal fails, T-Mobile USA will emerge a weaker company for the distractions, still with the same scale problems and then a likely subject of a Sprint takeover bid.

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