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Sunday, March 20, 2011

AT&T to purchase T-Mobile USA, creating industry leader, (NYSE: T)

AT&T Inc (T.N) struck a $39 billion deal to buy Deutsche Telekom AG's (DTEGn.DE) T-Mobile USA, to create a new U.S. mobile market leader and bolster its constrained network against a near insatiable appetite for videos and data from Apple iPhone and iPad users. The cash and stock deal, the largest deal this year, will give AT&T, the current No. 2 U.S. mobile carrier, an estimated 43 percent market share of customers in the United States from its current 32 percent, surpassing Verizon Wireless, which holds a 34.5 percent share, according to Tolaga Research estimates. "This is a unique opportunity." AT&T Chief Executive Randall Stephenson told reporters on a conference call. "It's rare you have a transaction where the synergies are greater than the price paid."

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