That would be the agreement between AT&T and Deutsche Telekom AG (NYSE: DT), T-Mobile's owner -- and at 78 pages, not including schedules and annexes, it's not exactly light reading. The New York Times' DealBook blog noted Friday that the complexity comes partly from T-Mobile being a privately owned entity.
The divested chunk could be huge. AT&T looks ready to drop 40 percent of T-Mobile's subscribership and might go even further, analyst Shing Yin of Citadel Securities wrote in a research note Thursday.
That would be good news for Sprint Corp. (NYSE: S), which would probably bid for the divested part of the business, he wrote.
This all makes sense "if AT&T’s strategy were to pre-empt a potential Sprint/T-Mobile deal," Yin wrote. "We think AT&T may simply be intent on acquiring however much of T-Mobile the regulators allow, and divesting the rest as required."
Divestiture is partly built into the sale price, too. For any shareholder or spectrum divestments that exceed $3.8 billion, DT would lower the purchase price accordingly. (Calculations for the divestments' worth are detailed in the agreement.)
You can keep up with Light Reading's ongoing AT&T/T-Mobile coverage here. Or, check out this list of some of our coverage so far.
- CTIA 2011: MetroPCS Reacts to AT&T/T-Mobile (video)
- CTIA 2011: AT&T & T-Mobile: Momentum for Other Mergers? (video)
- CTIA 2011: AT&T & T-Mobile: Net Neutrality Concerns (video)
- CTIA 2011: AT&T & T-Mobile: Good for Sprint? (video)
- Sprint Plans to Fight the AT&T/T-Mobile Deal
- CTIA 2011: Verizon, Sprint CEOs React to AT&T/T-Mobile Combo
- Who's Hurt if T-Mobile USA Vanishes?
- Cable Could Lose Wireless Bargaining Chip
- AT&T/T-Mobile: Riddled With Regulatory Risk
- What Happens to Sprint After AT&T/T-Mobile Merger?
- AT&T to Buy T-Mobile USA for $39B
— Craig Matsumoto, West Coast Editor, Light Reading