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AT&T cites later closing target for T-Mobile deal

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CIOL Bureau
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NEW YORK, USA: AT&T Inc expects to close its proposed $39 billion purchase of T-Mobile USA in the first half of 2012 because it is still fighting for U.S. regulatory approval.

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The company had said when it announced the deal in late March that it expected it to close in around 12 months, implying a close around the end of the first quarter of 2012.

The disclosure of the new target closing date was in the company's quarterly filing with the U.S. Securities and Exchange Commission on Thursday.

The Department of Justice had sued in late August to block the deal arguing that it would hurt competition in the U.S. wireless market.

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A February 13, 2012, trial date has been set for the Justice Department case against AT&T.

The company is looking to avoid a court battle by exploring ways to make the deal more acceptable to regulators with conditions such as asset divestitures.

AT&T would vault from second place to first place in the U.S. mobile market if it succeeds in buying No. 4 U.S. operator T-Mobile USA -- a unit of Deutsche Telekom.

Rivals Sprint Nextel has loudly opposed the deal and sued to block it. Earlier this week a U.S. judge ruled that Sprint could pursue part of its lawsuit.

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