The acquisition of T-Mobile by AT&T is not yet a done deal, as far as regulators are concerned. The latest development is that California state regulators may move to examine the $39 billion deal. If California does open an examination, it could delay the deal, and/or make it more complex to complete.

Rivals of the would-be largest cell phone service company in the country are opposed to the merger, as are many consumers who fear a rise in prices and a decrease in favorable service terms if the deal goes through. These groups will put pressure on the Justice Department and the Federal Communications Commission, which must approve any deal by AT&T and T-Mobile.

Staff for the California Public Utilities Commission were told to research for information about the AT&T T-Mobile merger so that the information would be available for the regulator at its next meeting on the 9th of June.

Expert observers say that the state regulatory authorities have the power to block the merger in their state, but usually what they do is impose California-specific conditions on their approval for a deal.

Because of California’s size and influence, San Diego mergers and acquisitions attorneys note that disapproval of the T-Mobile acquisition in the state would probably destroy the deal.

Also, as various states look into the acquisition (many at the behest of telecom rival Sprint), the reviews could delay the completion of the AT&T T-Mobile deal.

Source: Thomson Reuters News & Insight “California may review AT&T/T-Mobile USA deal” 5/27/2011