Report: Asset Sales Won't Persuade Regulators to Approve T-Mobile Takeover
Sizeable assets sales appear unlikely to placate restless regulators who are blocking AT&T’s (NYSE:T) $39 billion proposed buyout of T-Mobile USA, according to a published report.
The report suggests the mega merger is increasingly on life support due to regulatory hurdles.
According to the Financial Times, past solutions considered to win over regulators, including a sizeable asset sale to a smaller rival such as Leap Wireless (NASDAQ:LEAP) or MetroPCS (NYSE:PCS) now look unlikely to suffice.
Dallas-based AT&T is awaiting a ruling this week on whether or not the Department of Justice’s antitrust lawsuit will be allowed to begin in February as originally planned. If the judge delays the case, it may leave the deal in prolonged legal limbo.
The DOJ may decide to withdraw its lawsuit because the deal wouldn’t be permitted without approval from the Federal Communications Commission anyway, the FT reported.
Shares of AT&T slipped 0.28% to $28.95 early Monday. They have declined just over 1% year-to-date.