AT&T will give Deutsche Telekom a break-up fee and benefits worth about $6 billion if regulators reject the proposed takeover of the German company's U.S. business, Deutsche Telekom said on Friday.
In March, when the $39 billion deal was disclosed, the companies said AT&T would pay the German group a record break-up fee of $3 billion, but they did not put a value on other parts of the agreement.
"$3 billion would flow directly in cash, but Deutsche Telekom would also receive spectrum and a national roaming agreement," a Deutsche Telekom spokesman said.
"The company did not put a value on that, but according to analysts' estimates the spectrum and roaming agreement would amount to $3 billion," he added.
Sources familiar with the matter had told Reuters on Thursday that the agreement included about $2 billion worth of spectrum and a roaming agreement valued at roughly $1 billion.
Deutsche Telekom CEO Rene Obermann said on Thursday that he was confident the transaction would be completed in the first half of next year.
The deal needs approval from the U.S. telecommunications regulator, the Federal Communications Commission, and the Department of Justice, which examines antitrust issues around mergers.
AT&T's chief executive, Randall Stephenson, defended the deal at a hearing held by skeptical lawmakers on Capitol Hill on Wednesday.
Obermann is due to testify later in May.
(Reporting by Nicola Leske; Editing by Will Waterman)
Geo IoT is anticipated to move well beyond simply the ability to determine proximity for commerce and various retail applications. Longer term, presence detection and location determination will be a critical aspect of IoT privacy, security, and preference management for both consumer and industrial applications.
Analysis of the DAS market, including carrier WiFi, small cells, and SON, and the leading companies in the DAS ecosystem and their solutions. The report also includes evaluation of market drivers, challenges, and provides forecasts for 2016 to 2021.
Comprehensive coverage of NGN OSS/BSS including opportunities within Big Data and IoT, analysis of the drivers and issues related to the technical and business aspects of OSS/BSS, deployments and operations issues, and quantitative analysis with forecasts for anticipated growth through 2021.