Telecom giant AT&T Inc. (
) late Monday officially announced that it would no longer pursue
an acquisition of fellow mobile phone carrier T-Mobile USA,
following the blockage of the deal by multiple regulatory
The Dallas-based company will take a $4 billion one-time charge
in the fourth quarter as a result. That charge will cover break-up
fees owed to current T-Mobile owner Deutsche Telekom AG.
AT&T said in a prepared statement that "The actions by the
Federal Communications Commission and the Department of Justice to
block this transaction do not change the realities of the U.S.
wireless industry. The AT&T and T-Mobile USA combination would
have offered an interim solution to this spectrum shortage. In the
absence of such steps, customers will be harmed and needed
investment will be stifled."
Back in March, the company
announced it would buy T-Mobile USA for $39
, which would have created the largest wireless operator in the
AT&T shares fell 27 cents, or -0.9%, in premarket trading
The Bottom Line
We have been recommending shares of AT&T (
) since Mar.12, 2009, when the stock was trading at $23.35. The
company has a 6.12% dividend yield, based on last night's closing
stock price of $28.74.
AT&T Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.6 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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