If the merger between AT&T and T-Mobile USA does not go through, AT&T could be on the cook for up to US$6 billion in break-up fees. Citing “sources familiar with the matter,” Reuters indicates that this includes US$3 billion in cash, another US$2 billion worth of spectrum and a roaming agreement valued at US$1 billion.
The break-up fee amounts to about 15.4 percent of the deal’s worth, a percentage that is among the highest ever recorded. It suggests that AT&T has a high level of confidence that the deal will be approved.
None of these terms were confirmed by AT&T or T-Mobile.
The merger, announced in March, still needs to be approved by the U.S. telecommunications regulator, the Federal Communications Commission, and the Department of Justice. It could take up to a year to close.