Wednesday, August 31, 2011

Justice Department Sues to Block AT&T's Takeover of T-Mobile

WSJ - WASHINGTON—The U.S. Justice Department is suing to block AT&T Inc.’s proposed $39 billion takeover of T-Mobile USA, saying Wednesday that the combination of the second- and fourth-largest U.S. cellphone companies would hurt competition and likely raise prices.

The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint Nextel Corp. since it was announced in March. Shares of AT&T were down 3.5%. Shares of Sprint, thought to be a victim of an enlarged AT&T, were 6.3% higher.

The antitrust challenge comes shortly after the Obama administration also blocked Nasdaq OMX Group‘s proposed offer for NYSE Euronextand is further evidence of its desire to put new teeth into antitrust enforcement after what it says was a record of lax enforcement under the previous administration.                  More