AT&T Inc.’s $86 billion takeover deal with BellSouth Corp. ran into troubled waters as the Republican commissioner, Robert McDowell, announced to refrain from voting citing the ground of ethical standards. Robert McDowell said that ethics considerations prohibit him from participating in the deal consequently leaves the deadlock over the matter intact. McDowell’s decision is consistent with his earlier preference to desist himself from a decision to decide the merger deal.
However, the Federal Communications Commission’s general counsel had authorized the commissioner to participate in the review provided if he chose to do so. The FCC has been reviewing the proposed $86 billion merger since seven months. The deal has reached a deadlock as other four members of FCC’s five member panel, failed to reached a consensus.
The two democrat members of the panel are insisting to impose several conditions on the deal while the other two republican members including the Chairman want to clear the deal with no conditions.
McDowell’s decision in not exactly expected to derail the merger process. However, the recent development will force the panel to break their 2-2 stalemate by reaching to an agreement on the conditions that would be set on the prospective merger.
On the other hand, AT&T has been resisting any conditions that might restrict its ability to mange its latest new high-speed broadband network that is costing the company billions for construction. The company is also unwilling to agree to conditions that may restrict profitability in the special access zone.
However, analysts are arguing the latest development has triggered the chances that AT&T will be forced to make some concessions in the area of special access, which would surely inflict some serious financial damage on the company.
