AT&T Dropping Deal for T-Mobile

Shares of AT&T T are trading lower in the after-hours following word that the company will be dropping its proposed takeover T-Mobile with Deutsche Telecom. Shares are currently off by 0.56%, trading at $28.58; they ended the regular session lower by 0.38%, at $28.74. AT&T said that, after a thorough review, they are dropping the proposed deal. It was implied that the actions and rhetoric from Federal Communications Commission and the Department of Justice played a major part in the company's decision. The AT&T and T-Mobile USA combination would have offered an interim solution to T's spectrum shortage. While the company noted that they could continue to invest heavily, they added that customers will surely be harmed in the absence of the takeover. To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of $4 billion in Q4 2011. Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom. AT&T Inc. is a holding company. The company is a provider of telecommunications services in the United States and worldwide. These include wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, managed networking, wholesale services and directory advertising and publishing.