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
Monday, September 5, 2011
AT&T Might Not Have to Pay Breakup Fee
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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