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U.S. files to block AT&T deal for T-Mobile
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A view shows the AT&T store sign in Broomfield, Colorado April 20, 2011.
Credit: Reuters/Rick Wilking
WASHINGTON |
Wed Aug 31, 2011 11:50am EDT
WASHINGTON (Reuters) - The Obama administration on Wednesday filed to block AT&T's proposed $39 billion acquisition of wireless rival T-Mobile USA because of anti-competitive concerns.
The Justice Department said the acquisition would "remove a significant competitive force" with AT&T and T-Mobile competing in at least 97 of the top 100 U.S. wireless markets, according to court papers obtained by Reuters.
Blocking the acquisition on antitrust grounds would deal a blow to the telecommunication giant's expansion plans.
The deal falling through would cost AT&T, which promised to pay a cash breakup fee of $3 billion on top of giving spectrum to T-Mobile USA, a unit of Deutsche Telekom AG.
AT&T has said the deal would let it add capacity and meet demand for high-speed wireless service. Rivals such as Sprint Nextel Corp say it would hurt competition and lead to higher prices, an argument echoed by the Justice Department in the court papers.
The Federal Communications Commission has not made a decision to block the deal, a spokesman said. AT&T declined to comment.
Shares in AT&T slid 3.8 percent to $28.50. Stock in rival Sprint rose 9 percent to $3.85.
(Reporting by Jeremy Pelofsky and Diane Bartz. Editing by Robert MacMillan)
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We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (5)
reutersreaderid wrote:
yes!!!
Aug 31, 2011 10:57am EDT -- Report as abuse
HosedInAmerica wrote:
Good! It’s about time the anti-trust laws are enforced! All of the the uncontrolled mergers and acquisitions of these past 25 years have done nothing more than enrich a few and impoverish many!
Aug 31, 2011 11:06am EDT -- Report as abuse
seattlesh wrote:
Speaking as a AT&T cellular customer, T-Mobile users should pray that the US government prevails.
Aug 31, 2011 11:13am EDT -- Report as abuse
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