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AT&T Gives Up $39B Bid for T-Mobile

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  • Description

    FBN's Liz MacDonald on AT&T's decision to end its pursuit for T-Mobile.

  • Duration 2:18
  • Date

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-- close -- on back.

-- NC is out of their bid folksy mobile USA citing too much regulation pressure up.

Will the failure of this deal have public companies thinking twice about MNA action while -- Elizabeth -- -- in the newsroom with the story in this.

I guess this was no big surprise but why did AT&T wait until now to pull out of this deal.

Well Israeli AT&T -- -- Telecom they essentially Deutsche Telekom is saying that.

They had no choice because US government regulators were saying look you're going to emerge never to a number four.

Carriers that that's basically going to give 75% of the market to an AT team of T-Mobile deal along with Verizon.

And that was just untenable for.

I US regulators are worried that consumer prices were going to go up but -- -- Telecom is essentially saying.

Look this deal was not properly vetted by the US government.

That it would have created faster broadband it would have pushed us down the -- further to getting a high speed.

Possibly four G network to deal with increasing Internet and mobile phone traffic in the United States Deutsche Telekom is saying look we don't wanna be in the US market they -- -- You know the company T-Mobile to possibly leap wireless so that's it that's a lay of the land right now Deutsche -- not happy.

But the US government basically squashing the steel which would have been the biggest of the year actually.

Thought I guess the bigger question is what does this mean for other deals and -- and -- will in fact have a chilling effect next year do you think.

Well that's a fierce certainly when you talk to and officials for example American Bar Association -- deal with the antitrust department acted Justice Department.

And also the FTC they have seen an increase in the number of reviews by the government up 24%.

Says since 2009.

When mergers and acquisitions really bottomed out so on the table we still have Temple-Inland which is that big deal with International Paper.

And also the big one to watch is Express Scripts with Medco.

They may need to divest an eighteen did actually -- that will that that's -- the wedding thing.

That you want to get this deal going but still they may not a wall of resistance in the US government which -- they're saying that her consumers.

Because they felt that they could offer cheaper fees on Internet access and mobile.

Phones very good Liz MacDonald Omnia while the outlook for M and -- action next year thank you very much --

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