AT&T Inc. (T) said it entered a definitive agreement withDeutsche Telekom AG (DTE) to acquire T- Mobile USA in a cash-and-stock transaction currently valued at approximately $39 billion.
The purchase price will include $25 billion in cash and the balance in AT&T stock, subject to adjustment, according to a statement today. The deal may give Deutsche Telekom an 8 percent stake in the Dallas-based carrier, which will add a Deutsche Telekom executive to its board of directors. If completed, the deal would allow AT&T, now the second- largest U.S. wireless operator, to add 34 million customers and surpass Verizon Wireless as the largest in the country. The acquisition may face regulatory scrutiny because it combines the second- and fourth-largest wireless providers. AT&T said that it would expand the rollout of its high- speed wireless technology, called Long-Term Evolution, or LTE, under the T-Mobile agreement. AT&T said it would offer the service to an additional 46.5 million people as part of the deal, helping achieve the Federal Communications Commission goal of making broadband available more widely. “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” Randall Stephenson, AT&T Chairman and CEO, said in a statement. “It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, The agreement has been approved by the Boards of Directors of both companies, Deutsche Telekom said in a statement. The T-Mobile transaction, subject to regulatory approval, is expected to close in about a year, AT&T said. AT&T was advised by Greenhill & Co., JPMorgan Chase & Co. (JPM) and Evercore Partners on the deal. http://www.bloomberg.com/news/2011-03-20/at-t-agrees-to-buy-deutsche-telekom-s-t-mobile-usa-unit-for-39-billion.html Greg Williams [email protected] [email protected] _______________________________________________ Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
