May 18, 2014 / 10:46 PM / in 4 years

AT&T won't pay break-up fee if regulators reject deal-source

May 18 (Reuters) - AT&T and DirecTV have agreed that there will not be a reverse break-up fee, or penalty that AT&T would have to pay the satellite operator if regulators shut down the proposed combination, according to a person familiar with the matter.

DirecTV has agreed to pay a $1.4 billion breakup fee to AT&T if the satellite operator ditches the deal to pursue a potential topping bid, the person added, asking not to be named because the matter is not public.

In 2011, when regulators shot down AT&T’s purchase of T-Mobile, the larger telecommunications company had to pay $3 billion in cash and another $3 billion in assets to its smaller rival.

Representatives for AT&T and DirecTV could not be immediately reached for comment. (Reporting by Soyoung Kim; Editing by Bernard Orr)

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