Deutsche Telekom Could Miss $6 Billion Fee If AT&T-T-Mobile Deal Fails

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The AT&T-T-Mobile deal, believed to be profitable for Deutsche Telekom no matter whether the merger gets approved or not, may not be that sweet for the German telecommunication giant after all.

Deutsche Telekom would be entitled to a break fee “comprising $6 billion in cash and other assets should regulators reject the deal,” Reuters reminded everyone, but, as always, certain terms and conditions apply.

The acquisition would have to get the regulatory approval “within a certain timeframe,” and T-Mobile USA will have to keep its value over a certain level, in order for AT&T to still be required to pay the break fee.

The Department of Justice sued AT&T to block the deal last week and certain officials said that AT&T would not be the victor of such a lawsuit. AT&T has also proposed to sell parts of T-Mobile, in order to address antitrust claims, and to bring back 5,000 jobs to the USA in an attempt to sweeten the deal.

The fat lady is yet to sing in this case, and the fact that the U.S. government is opposing the deal doesn’t necessarily mean it will not go through. According to a German government official, the U.S. Department of Justice is holding talks with the two companies, which means “a deal for AT&T to buy T-Mobile USA could still be reached”. AT&T is also expected to offer a new solution for U.S. antitrust regulators to “salvage the deal.”

Should the deal fail though, it will be interesting to see whether AT&T will have to pay the $6 billion break fee to Deutsche Telekom or not. That, however, may not be the biggest problems the German mobile operator will have since it will be stuck with its U.S. mobile venture, T-Mobile, which it obviously wants to get rid off.

What say you, T-Mobile subscribers, about this potential AT&T purchase of your favorite carrier?