Deutsche Telekom may be forced into a tie-up of its sub-scale U.S. wireless unit with Sprint Nextel after a $39 billion deal with AT&T collapsed.
The chances of AT&T’s bid for T-Mobile USA succeeding rapidly diminshed after AT&T said it would take a $4 billion charge in case its takeover fails. The telecommunications group and T-Mobile owner Deutsche Telekom, said they would continue to pursue anti-trust approval for the $39 billion takeover from the Department of Justice, but withdrew for now applications to the industry regulator.
Groupon called off an IPO roadshow slated for next week because of market volatility, the Wall Street Journal reported. The Internet coupons site is reassessing the timing for an offering on a week-by-week basis, the newspaper added, citing an unidentified source. Some on Wall Street have questioned Groupon’s financial disclosures, while others are concerned the company’s rapid growth is starting to slow in North America. Groupon CEO Andrew Mason sent a memo to employees recently that was widely reported in the media, in which he blasted critics in the press and on Wall Street.
AT&T was expected to soon present a two-track plan that allows the company to try to find a settlement before the government lawsuit to block its planned $39 billion acquisition of smaller rival T-Mobile USA reaches the court. Details of AT&T’s proposed settlement were not available, but it is expected to include pledges to maintain T-Mobile’s relatively cheap mobile subscription plans, and asset sales.
Amazon.com opened its store for Google Android smartphone applications, ratcheting up its fight with Apple after the iPhone maker sued Amazon in a bid to stop the online retailer from improperly using its App Store trademark.
AT&T’s planned buy of T-Mobile USA is ultimately expected to get regulatory approval, combining the second and fourth largest wireless operators to create a new leader that will control around 43 percent of the U.S. wireless market. AT&T CEO Randall Stephenson suggested he had little choice but to do it as AT&T is in dire need of more wireless airwaves to increase network capacity for mobile Web services.