AT&T Officially Drops Bid for T-Mobile; Will Take $4 Billion Q4 Charge (T)


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Telecom giant AT&T Inc. ( T ) 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 agencies.

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 billion , which would have created the largest wireless operator in the U.S.

AT&T shares fell 27 cents, or -0.9%, in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of AT&T ( 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. ( T ) is not recommended at this time, holding a 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 our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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