The company did not think it was feasible to restructure the deal.

This is a logical and predictable move by AT&T ( T ).

It's not a people target, it is an expense target, ... We do not expect a significant impact to the head-count at GTE.

This is the right time for us to take action that helps us sharpen our focus on our three network-based businesses. This move will give them additional flexibility to maneuver in a fast-moving marketplace.

Bankrupt companies are entitled to due process. But they can't use bankruptcy to skirt the process by which they're held accountable to regulatory bodies, particularly when there might be criminal conduct involved.

We're very confident that our transaction is on track in terms of approvals.

We're working around the clock, ... It will be incremental and will happen in stages. It will take some time before everyone is up.

We made the decision to terminate the agreement on a material adverse change clause. It was because of the ongoing deterioration of their business.

With the MCI transaction close to completion, this is the right time for us to take action that helps us sharpen our focus on our three network-based businesses. This move will give them additional flexibility to maneuver in a fast-moving marketplace.

When we announced the merger agreement on Aug. 8, this was not the case.