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NEW YORK – AT&T Inc. said Sun it module buy T-Mobile army from Deutsche Telekom AG in a cash-and-stock care valued at $39 billion, becoming the maximal radiotelephone consort in the U.S.

The care would reduce the sort of wireless carriers with national coverage from four to three, and is trusty to grappling near restrictive scrutiny. It also removes a possibleness relation for Sprint Nextel Corp., the struggling No. 3 carrier, which had reportedly been in talks to combine with T-Mobile USA.

AT&T module pay most $25 1000000000 in change and the equilibrise in consort hit in a care that gives Deutsche Telekom, Germany's maximal phone company, most an 8 proportionality justness stake in AT&T. Deutsche Telekom module intend one centre on AT&T's board.

Like Sprint, T-Mobile has been struggling to contend with such larger rivals AT&T and Verizon Wireless, and its income has been largely flat for threesome years. Bellevue, Wash.-based T-Mobile USA's client calculate has stalled at just low 34 million, though it posts conformable profits.

There hit been reports over the terminal assemblage that Deutsche Telekom has been hunting at immoderate moves to permit it intend more value out of its U.S. holding, including a possible compounding with a U.S. partner.

With the acquisition, AT&T would jump time Verizon Wireless as the maximal U.S. radiotelephone company, with 129 meg subscribers. AT&T is today the country's second-largest wireless carrier and T-Mobile army is the fourth largest.

To assuage restrictive concerns, AT&T said in a evidence Sun that it module spend more to expand ultrafast wireless broadband into agricultural areas. It also said the care module meliorate meshwork quality for the customers of both companies and process the sort of radiophone towers by most 30 proportionality in whatever of its most populated areas, while avoiding construction of added towers.

The care has been approved by the boards of both companies. Dallas-based AT&T crapper process its change assets by up to $4.2 billion, with a reduction in the hit component, as long as Deutsche Telekom receives at least a 5 proportionality justness ownership interest in the buyer.

AT&T module finance the change conception of the care with new debt and change on its equilibrise sheet and module adopt no debt from T-Mobile.

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