AT&T (NYSE: T) planned to buy the T-Mobile unit of Deutsche Telekom for $39 billion. The deal for the purchase of the No.4 wireless firm in the US has been effectively blocked by the government, and AT&T faces a $4 billion break up fee.
Now, according to The Wall Street Journal, AT&T may have a new plan.
The paper reports that
AT&T Inc. and Deutsche Telekom AG, the parent of T-Mobile USA, have discussed forming a joint venture that would pool network assets from the two U.S. wireless carriers as an alternative transaction if their current acquisition deal falls apart, people familiar with the matter said.
The new idea may be no better than the merger. The federal government could still view the JV as a de facto merger and attempt to block it in the court system. Sprint-Nextel (NYSE:S) the troubled N0.3 wireless carrier has indicated that it may use the legal system to block the marriage.
So far, AT&T’s new plan seems to be DOA.
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