AT&T Announced Acquisition of T-Mobile for $39BN in Stock and Cash

By on Mar 21, 2011 in Business, Current Events, Headlines, Stock Market, United States Comments

Image Credit: AT&T

According to businesswire.com, AT&T has reached an agreement to acquire T-Mobile both in cash and in stocks.The agreement states that AT&T will pay $25-billion in cash, and the remaining $14-billion in stock will be provided to T-Mobile parent company Deutsche Telekom. The total stock will be equivalent to eight percent ownership of Deutsche Telekom in AT&T.

AT&T stated that the acquisition will provide fast and efficient solution to the challenging increasing demand of the Mobile Broadband. It is also expected to increase coverage of AT&T’s new 4G Long Term Evolution (LTE) network.

It is estimated that about 95-percent (more than 294-million people) of the U.S. population will be able to access AT&T network.

AT&T will have an additional 46.5-million new subscribers as a result of the acquisition.

According to Deutsche Telekom Chairman and CEO René Obermann in his statement today, he is confident that AT&T is the best partner for their customers, shareholders and the mobile broadband ecosystem.

Greenhill & Co., J.P. Morgan and Evercore Partners acted as financial advisors and Sullivan & Cromwell LLP, Arnold & Porter, and Crowell & Moring provided legal advice to AT&T.



Spread The News!



Tags: , , , , , , , , ,

Advertisement

Related News



What's On Your Mind?




Pinterest
Email