JP Morgan who is one of the largest TARP (Trouble Asset Relief Program) recipients may syndicate and fund a bridge loan for AT&T to buy T-Mobile. If the deal gets completed, JP Morgan would fund about half of AT&T's proposed $39 billion acquisition or about $20 billion. In addition to serving as lender, J.P. Morgan is advising AT&T as an investment bank. Any conflict of interest Jamie Dimon?
The loan will be an 18-month commitment for a one-year unsecured bridge loan that AT&T can use to finance the acquisition. Plenty of hedge funds who might take the other side of this trade and short it. There are many reasons why this deal might not get done. See our AT&T protest for other articles highlighting the challenges this deal will face getting approval. AT&T's payment known as a "reverse break-up fee" is $3 billion in cash. In addition, AT&T will transfer some of its assets including the rights to additional wireless spectrum and certain roaming capabilities, to Deutsche Telekom. Who is advising Deutsche Telecom on the sell side transaction? Here is a list of investment bankers that are working on the AT&T merger.