AT&T Acquires T-Mobile

AT&T Acquires T-Mobile

Surprisingly, T-Mobile USA announced have been sold for U.S. $ 39 billion to the giant operators in the United States, AT & T.

Although rumors about the sale of T-Mobile circulating warm in recent years, but they always imagine to combine forces with small operators, like Sprint Nextel or the youngest operator, Clearwire. Apparently, the condition is not as envisaged.

According to the agreement, as reported by the, Deutsche Telekom as a shareholder of a full T-Mobile will receive U.S. $ 25 billion in cash and U.S. $ 14 billion in shares in AT & T. Structurally, Deutsche Telekom will become the largest minority shareholder in AT & T by eight per cent share.

However, AT & T still has the right to increase the portion of the purchase price paid in cash up to U.S. $ 4.2 billion with a corresponding reduction of the component stocks.

The agreement also includes the two companies placed one representative on the board of directors of Deutsche Telekom.

Just to note, in the transaction, T-Mobile USA has been explored by considering as many as seven times earnings before interest, taxes, depreciation, and amortization that has been tailored to the business in 2010.

Despite the signing, the merger still must be approved by two other official organizations, namely the U.S. Department of Justice (DOJ) and Federal Communications Commissions (FCC). The process of the transaction is expected to actually completed in the first six months of 2012.

After the transaction is closed, Deutsche Telekom reportedly planning to use about 13 billion euros of bonds to reduce its debt. And, about 5 billion euros to buy back its shares.

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