AT&T says it has enough cash and desire to close the T-Mobile deal
Almost from the moment that AT&T announced its intention to purchase fellow carrier T-Mobile for $39 billion, roadblocks have been put in place making it an uphill climb for the larger carrier. Not only is AT&T facing a lawsuit against the Department of Justice, the company had to pull its application for the acquisition from the FCC just before that august body was able to vote for a review of the deal by an administrative law judge.
Still, AT&T says that it not only has the desire to continue its pursuit of the nation's fourth largest carrier, it also has enough money on hand to close the deal quickly. Recently selected as the carrier with the lowest customer satisfaction by Consumer Reports, AT&T has $10 billion in cash, a $20 billion bridge financing and an $8.5 billion backup all ready to use at a moment's notice. AT&T CFO John Stephens says, "So we clearly have an ability to close the deal very quickly and have those resources. That is the plan."
AT&T's focus right now is on the lawsuit against the DOJ. The carrier will have to prove that the merger will not lessen competition in the industry and will not result in job cuts. In the past, AT&T has promised to bring a number of jobs back to the States and there is some talk that the company would divest itself of as much as a 40% stake in T-Mobile's assets.
If AT&T does win the case, it will still have to re-file with the FCC and the company also faces lawsuits from rivals Sprint and C-Spire.
source: Reuters via Phonescoop
If AT&T does win the case, it will still have to re-file with the FCC and the company also faces lawsuits from rivals Sprint and C-Spire.
source: Reuters via Phonescoop
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