Thursday, August 18, 2011

Kansas, California scrutinize ATT/T-mobile deal

By Greg Bensinger

NEW YORK -(MarketWatch)

Add Kansas, home of Sprint Nextel Corp. and California to the growing list of attorneys general investigating AT&T Inc.'s proposed $39 billion takeover of T-Mobile USA.

The offices of Kansas's and California's top prosecutors, Derek Schmidt and Kamala Harris, respectively, are seeking information related to the AT&T merger bid, according to a July letters to the Federal Communications Commission posted Mondy to the agency's website. Schmidt and Harris join attorneys general from New York, Minnesota, Arizona, Florida, Hawaii, Illinois, Texas, Pennsylvania and Washington in seeking additional information about the deal, proposed in March.

Sprint has been one of the most vocal opponents of the AT&T deal, saying it will stifle competition and damage smaller carriers' ability to keep prices down. The deal will expand AT&T's planned fourth-generation network offering to more Americans, the Dallas-based carrier has said.

AT&T was recently up 2.1%, or 59 cents, to $28.81. T-Mobile USA is a subsidiary of Deutsche Telekom AG. 

California's Public Utilities Commission is conducting a formal review of the deal.

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