AT&T Hopes To Settle Department Of Justice Complaint Over Merger
September 2, 2011

AT&T Hopes To Settle Department Of Justice Complaint Over Merger


AT&T is trying to save its $39 billion merger with T-Mobile by planning a settlement offer with the Department of Justice.

Reuters reported that AT&T is preparing to present a two-track plan to the U.S. government to prevent a lengthy court battle with the Justice Department.

Analysts said high-ranking employees at AT&T are confident a settlement is the answer because they believe the Justice Department will not want to go to trial out of fear it will lose to the carrier.

According to a complaint filed in federal court on Wednesday, the U.S. government says AT&T´s proposed $39 billion acquisition of T-Mobile USA Inc. would “substantially lessen competition” in the wireless market.

The complaint says AT&T would violate U.S. antitrust law if it is allowed to purchase T-Mobile.

“AT&T´s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing.

Reuters reported that AT&T is willing to sell off 25 percent of T-Mobile's business and promise not to raise existing T-Mobile prices. 

"AT&T is pretty determined that they can find a solution, and they are pretty confident," a source told Reuters.

If the merger were to happen, AT&T would control over 50 percent of 17 metro U.S. markets.


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