AT&T Might Not Have to Pay Breakup Fee

AT&T could escape paying a breakup fee to Deutsche Telekom if the T-Mobile USA deal does not receive regulatory clearance, under some circumstances, some say.

"There are a number of options under which the contract will not come into effect," Reuters reports.

As part of the AT&T bid, Deutsche Telekom is supposed to be paid a breakup fee comprising $6 billion in cash and other assets should regulators reject the deal.

Under its agreement with Deutsche Telekom, the deal is only valid if the acquisition receives regulatory approval within a certain time frame, a source told Reuters.

Also, the agreement could become invalid if regulatory conditions for the sale push the value of T-Mobile USA below a certain level, Reuters reports.

AT&T might not have to pay breakup fee