From the NEW YORK TIMES:
AT&T and T-Mobile USA edged closer to scrapping their proposed merger, saying on Thursday that they had withdrawn their application to the Federal Communications Commission to join their cellular phone operations.
Deutsche Telekom, the parent of T-Mobile, and AT&T said in a joint statement that they still intended to pursue the $39 billion merger and would prepare for a federal antitrust lawsuit that is seeking to block the deal. But the companies also said that AT&T planned to take a $4 billion charge against earnings to reflect the potential breakup fees that AT&T would have to pay Deutsche Telekom if the deal failed to go through.
The actions followed the decision this week by Julius Genachowski, the F.C.C. chairman, that the merger did not meet the commission’s standard for approval. Mr. Genachowski sent other commissioners a proposed order to refer the case to an administrative law judge, the first step toward a commission move to block the deal, which would combine the second- and fourth-largest cellphone carriers in the United States…
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EDITOR: Disallowing mergers used to be a common occurrence until the past three decades when mergers to suppress competition have been allowed to occur with equanimity. It is reassuring to know that there are some public officials who aren’t just motivated by a cushy job and big pay check with the industry they regulate when they leave office. This turn down not only prevents further monopolistic concentration in the cell phone industry but sends a message to others that there is a new sherriff in town!
