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It’s time for Plan B with regards to AT&T’s proposed acquisition of T-Mobile, now that the U.S. Department of Justice has vowed to fight the merger in court. The wireless carrier is reportedly preparing a list of concessions and changes to its deal in order to see if that assuages the concerns of federal authorities.
Reuters notes that AT&T (NYSE: T) has swung into action after initially claiming that it was “surprised” by the Justice Department’s decision, which is really hard to believe. Opposition to the merger has been strong in many areas (including this one) from critics who believe the deal would consolidate too much power in a growing industry with a single company that is not known for affordable pricing or customer service.
Details about AT&T’s Plan B were not provided, so it’s hard to handicap how they might be received. But Reuters (NYSE: TRI) notes that it is likely to include assurances from AT&T that it will keep T-Mobile’s low-cost pricing plans and could involve some divestitures in local markets where the combined heft of the two companies would be extraordinary.