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AT&T will not pay break-up fee if regulators reject DirecTV deal

19
May
2014

By Soyoung Kim NEW YORK (Reuters) – ATT Inc has learned its lesson from its ill-fated $39 billion bid for T-Mobile USA. DirecTV, which has agreed to be acquired by ATT for $48.5 billion, will not ask the wireless operator to pay a reverse break-up fee, or penalty, if regulators reject the proposed combination, according to people familiar with the matter. Meanwhile, DirecTV has agreed to pay a $1.4 billion break-up fee to ATT, or roughly 3 percent of the deal value, if it ends the deal to accept a higher bid, the people added, asking not to be named because the matter is not public. The companies later confirmed the information on breakup fee.

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