AT&T approaches rivals for help to seal merger deal

AT&T is scrambling to pick up the pieces after the news of 7 states joining the Department of Justice in pursuit to stop the merger between AT&T and T-Mobile. A few days ago we told you about AT&T trying to salvage the deal by searching for more who would be willing to support the acquisition.

It has been reported that AT&T has approached several companies, including smaller rivals, with hopes of saving the $39 billion dollar takeover. The telecommunications giant has offered to sell spectrum and subscribers to smaller rivals such as Metro PCS Communications, and Leap Wireless. They have also looked into selling assets to Century Link, Dish Network and Sprint Nextel.

Although the Justice department sued on Aug. 31 to stop the deal, AT&T continues to try and salvage the agreement with T-Mobile’s parent company, Deutsche Telekom. If in fact the merger does fail, AT&T agrees to pay Deutsch Telekom $3 billion along with wireless spectrum and roaming agreements.

AT&T would become the largest U.S. carrier (currently in second) if a purchase is made and will fight the the justice department in court on Sept. 21 with hopes to come to an agreed settlement. Not only will they need to win in court, they will also need to have the FCC’s blessing.

It would appear that AT&T has a long and arduous road ahead of them and it doesn’t help that customers from both carriers would be enraged if they succeed.

How would you feel if the two cellular giants merged? Leave us your comments below.

[via bloomberg]