AT&T,T-Mobile USA break-up is $6 billion

Source: 
Coverage Type: 

Apparently, AT&T has promised to give Deutsche Telekom $6 billion in assets, services and cash as a break-up fee if US regulators reject its proposed $39 billion purchase of the German company's T-Mobile USA.

The $6 billion would include $3 billion of cash, as AT&T has previously disclosed, and about $2 billion worth of spectrum and a roaming agreement valued at $1 billion. While the cash agreement is already unusually high at 7.7 percent of the total deal price, the addition of assets and services of a similar value would mean that the companies are breaking global records with a 15.4 percent break-up fee. The high fee underscores AT&T's confidence that it can convince regulators to approve the deal.


AT&T,T-Mobile USA break-up is $6 billion