osewalrus (osewalrus) wrote,
osewalrus
osewalrus

What is it about Germany that Makes AT&T's allies so honest?

I will write this up later on my blog, despite being bored to death of AT&T, because this is just so stupid.

First, Bloomberg reported that Larry Cohen, the President of Communications Workers of America and staunch supporter of AT&T acquiring T-Mobile, told a German magazine that AT&T had only a 20% chance of closing its deal to acquire T-Mobile.

AT&T has been telling everyone the whole thing is really in the bag, so a close ally of AT&T saying that the take over is only 20% likely to succeed is quite stunning for people who refuse to admit the obvious (which is, surprisingly, most Wall St. analysts, who have given AT&T a 40% chance of closing the deal -- my feeling is this is delusional).

So, pressed by AT&T, CWA issued a clarification of what Larry Cohen actually meant. As reported by the Wall St. Journal, however, the "explanation" is so amazingly lame that it is probably better not to have issued it. Cohen "clarified" that what he really meant was that he thought that AT&T had a 60% chance that DoJ would settle. If that didn't happen, he thought AT&T had a 50% chance of winning in court. Somehow, this translates to only 20% chance of AT&T acquiring T-Mobile.

This perhaps explains why CWA has done so poorly in their recent contract negotiations. They think they are getting a raise a better pension plan by freezing salaries and reducing the employer contribution.
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