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Posted: Wed 3:21 PM, Aug 31, 2011
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Reporter: Associated Press Email

AT&T Purchase of T-Mobile Blocked

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 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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