Wednesday, November 9, 2011
Justice Department Gears Up for ATT Litigation
The Justice Department's rejection of AT&T's proposed purchase of T-Mobile USA will test new federal guidelines on challenging mergers and the companies' resolve in forming the nation's largest wireless carrier.
A courtroom battle is likely and could wring out information that the companies would prefer to keep private. Still, AT&T Inc. has a big incentive to fight: If the deal is called off, the company has to pay a $3 billion breakup fee and surrender some of its unused spectrum for wireless communications.
AT&T is promising to fight the Justice Department's decision. The department filed a lawsuit Wednesday to block the $39 billion deal, saying it would reduce competition and lead to price increases for customers.
If AT&T follows through on that, it could produce the biggest antitrust showdown since business software maker Oracle Corp. squared off with the federal government seven years ago. That dispute, triggered by the government's decision to block Oracle's proposed purchase of rival PeopleSoft Inc., exposed several well-kept corporate secrets and required Oracle CEO Larry Ellison to testify before a packed courtroom.
Contact me at email@example.com at GTT Global Telecom & Technology for more Info 720-259-5419: Whether price shopping for local carriers,seeking Dedicated Internet Access (DIA), MPLS. VPLS. Point to Point Networking, IP Transit or better Peering -we have over 700 and 100 On Net POP's in 46 markets! GTT has a suite of offerings that nobody else has. We can help you choose the best of breed technologies and services from hundreds of telecom carriers. We're also globally in 80 countries -covering 800 suppliers and include a suite of our own modular technology and managed services options.