AT&T ends bid to purchase T-Mobile USA

AT&T announced today that it has agreed with Deutsche Telekom AG to end its bid to acquire T-Mobile USA, which began in March of this year. The two companies are abandoning the $39 billion deal amid stiff government regulatory hurdles. To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011. Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom.