The article reveals new details about the merger contract between AT&T and T-Mobile, which, if correct, could provide options for a deal to go ahead in some form following lawsuits from the U.S. Department of Justice and Sprint Corp. (NYSE: S) to block the merger. (See DoJ Blocks AT&T/T-Mobile Merger and AT&T & T-Mobile: Sprint Sues, DT Confirms $3B Fee.)
Reportedly, if regulators require AT&T and T-Mobile to sell assets worth more than 20 percent of the acquistion's $39 billion value -- that is, $7.8 billion -- then AT&T would be able to cut its original offer for T-Mobile. If the asset sales required are worth more than 40 percent of the deal's value, then AT&T could pay T-Mobile's parent Deutsche Telekom a $3 billion in cash breakup fee, according to the report.
The article marks a new plot twist in this mobile mega-merger. But more of the story will unfold later this month when AT&T and the Department of Justice meet in court on Sept. 21 to discuss "the prospects for settlement," according to this separate Bloomberg report.
Here's Light Reading Mobile's latest coverage on the AT&T/T-Mobile deal:
- What Could T-Mobile Do After AT&T?
- AT&T: What It Loses Without T-Mobile
- Analyst: DoJ Suit Bad for All Carriers
- Deputy AG: Merger Meant Higher Prices
- AT&T/T-Mobile: Nationwide LTE Within 6 Years
- Euronews: DT Fights to Keep AT&T Merger Alive
- Euronews: DT Slumps Following AT&T Bombshell
— Michelle Donegan, European Editor, Light Reading Mobile