NEW YORK (MarketWatch) ? AT&T Inc. has signed an agreement with Deutsche Telekom AG to purchase T-Mobile USA in a cash-and-stock deal worth about $39 billion, the companies announced Sunday.
The boards of directors of both AT&T (T 27.94, +0.20, +0.72%) and Germany?s Deutsche Telekom (DTEGY 13.58, +0.03, +0.22%) have approved the acquisition, which is subject to regulatory approvals and is expected to close in about a year, the wireless companies said in a joint statement.
The purchase includes a cash payout of $25 billion, with the remainder to be covered with AT&T common stock. AT&T can hike the cash part of the purchase by up to $4.2 billion, the statement said.
Terms of the deal also give Deutsche Telekom a roughly 8% stake in AT&T, and a Deutsche Telekom representative will join AT&T?s board.
http://www.marketwatch.com/story/att...ion-2011-03-20