Friday, July 22, 2011

Analysts put bets on AT&T, T-Mobile merger, even with setbacks

Will the events of this week hurt AT&T's bid for T-Mobile? Possibly, but not enough to stop the deal, some analysts say.

They say a call by Senator Herb Kohl (D-Wisc.) to block the deal and a delay in the Federal Communication's review will embolden critics and put greater focus on how the deal will affect competition in the wireless industry and ultimately change monthly bills for consumers.

But in the end, that may just mean more conditions on the $39 billion merger, some experts say.

"The ebbs and flows of merger reviews create moments of pause that sometimes imply greater uncertainty and risk than what actually exist," said Jeffrey Silva, an analyst at Medley Global Advisors in a research note."This appears to be one of those moments, though the warning signs should not be ignored."

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