AT&T-Mobile: What the analysts say

March 21, 2011: 11:18 AM ET

The acquisition deal announced on Sunday unleashed a flood of analyst's notes

Image: Engadget

With the fate of so many players at stake -- not just AT&T (T) and Deutsche Telekom (DT), but also Verizon (VZ), Sprint (S), Apple (AAPL), Research in Motion (RIMM), Hewlett Packard (HPQ), Nokia (NOK), Motorola (MOT) and the other makers of Google (GOOG) Android phones, not to mention all the companies that build cell towers -- everybody on Wall Street, it seems, had something to say. A sample of the analyst's reports:

Stifel Nicholaus' Rebecca Arbogast: You've got to give credit to AT&T for shaking things up. The latest wireless deal, between AT&T and T-Mobile (part of DT), doesn't lack for dramatic impact, but we believe the government's initial response will be measured. We don't expect the FCC chairman will declare it to be unthinkable as Reed Hundt did in immediate response to the rumored AT&T-SBC deal years ago. Rather we think it likely that DOJ and the FCC take a deep dive into the individual market analysis... We are confident AT&T would have worked through both the political calculus and the hard numbers before agreeing to a $3 billion break-up fee, and AT&T has a sterling record of getting deals approved by the government. But we do not expect they had "socialized" the merger with DOJ or the FCC in advance, and we believe there is a large measure of uncertainty necessarily inherent in the deal.


Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by VIP.