AT&T Purchase of T-Mobile Blocked
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Posted: 3:21 PM Aug 31, 2011
AT&T Purchase of T-Mobile Blocked
The Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices. That's according to a person familiar with the matter.
Reporter: Associated Press
Email Address: news@kolotv.com
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WASHINGTON (AP) - The Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices. That's according to a person familiar with the matter.

The person spoke on condition of anonymity because the agreement wasn't announced yet.

The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint since it was announced in March.

AT&T could challenge the Justice Department's action in court.

A failure of the deal puts T-Mobile in a difficult position. It's struggling to compete with the larger carriers, and owner Deutsche Telekom AG has said it's not willing to invest more in the venture.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Comments

Posted by: . on Sep 1, 2011 at 08:56 AM

Finally all this M&A foolishness to create monopolies has been slowed.
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