[ NNSquad ] AT&T braces for T-Mobile deal collapse

[Lauren Weinstein <lauren@vortex.com>]

AT&T braces for T-Mobile deal collapse

http://j.mp/uhCNW7  (Reuters)

    "Credit rating agency Moody's said it believed Deutsche Telekom would
     rather exit the U.S. market than go it alone.  "The options open to
     Deutsche Telekom if it were to stay in the U.S. market are much less
     palatable than if it were to exit," wrote Carlos Winzer, senior vice
     president at Moody's.  However, the ratings agency believes that
     Deutsche Telekom will fight aggressively alongside AT&T to salvage the
     sale process to improve its weak position in the United States.  A
     failure would throw Deutsche Telekom Chief Executive Rene Obermann's
     strategy into disarray and may force him to throw money at a business
     he thought he was rid of. Company officials have said there is no
     "Plan B".  The company faces a long delay at best and may be driven
     back into the arms of No. 3 U.S. carrier Sprint Nextel -- a less
     suitable partner for whom T-Mobile USA would not be worth nearly as
     much now as it was to AT&T in March."

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--Lauren--
NNSquad Moderator