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Tuesday, May 17, 2011

AT&T, T-Mobile USA break-up is $6 bln-sources, (NYSE: T), (NYSE: S)

AT&T Inc (T.N) has promised to give Deutsche Telekom (DTEGn.DE) $6 billion in assets, services and cash as a break-up fee if U.S. regulators reject its proposed $39 billion purchase of the German company's T-Mobile USA, according to sources familiar with the matter. The $6 billion would include $3 billion of cash, as AT&T has previously disclosed, and about $2 billion worth of spectrum and a roaming agremeent valued at $1 billion, according two sources who asked not to be named as those details were not public. While the cash agreement is already unusually high at 7.7 percent of the total deal price, the addition of assets and services of a similar value would mean that the companies are breaking global records with a 15.4 percent break-up fee, according to Thomson Reuters Data. The high fee underscores AT&T's confidence that it can convince regulators to approve the deal, which is already being heavily criticized by many consumers and AT&T rivals including No. 3 U.S. mobile service Sprint Nextel (S.N).

AT&T Inc. is a holding company. The Company is a provider of telecommunications services in the United States and worldwide. Shares of T traded higher by 0.83% or $0.26/share to $31.64. In the past year, the shares have traded as low as $23.78 and as high as $31.94. On average, 30137100 shares of T exchange hands on a given day and today's volume is recorded at 10646444.

Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S traded higher by 0.87% or $0.045/share to $5.225. In the past year, the shares have traded as low as $3.70 and as high as $5.37. On average, 60622100 shares of S exchange hands on a given day and today's volume is recorded at 17340192.



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