The Financial Times is reporting that Berlin is becoming increasing anxious over the uncertain future of AT&T's proposed $39 billion buyout of T-Mobile from Deutsche Telekom AG. The German Government is the largest shareholder of Deutsche Telekom, with a 32 percent stake in the telecommunications giant.
Opposition to the merger is coming from all angles in the United States, with both regulators at the Federal Communication Commission (FCC) and the Department of Justice (DoJ) opposed to it on the ground that it would harm competition in the market, and potentially lead to job losses.
The FT report said that government officials in Berlin are resigned to the deal falling through, or to a radical reconfiguration of the acquisition to gain approval from regulators.
AT&T is reportedly holding discussions with a third party over the possible sale of a multibillion portfolio of assets. The disposal of certain assets could be looked upon favourably by the DoJ, depending on the circumstances.
Written by: James Delahunty @ 2 Dec 2011 4:08