AT&T

01 Sep, 2011

AT&T and T-Mobile USA deal challenged by US Government

The US government is trying to block telecoms giant, AT&T’s attempt to acquire T-Mobile USA, a move which could see the deal collapse.

US company AT&T, agreed to buy its rival from current owner, Deutsche Telekom earlier in the year, in a $39bn (£24bn) deal which would create the largest wireless network in the US.

However, the Justice Department has sought a court order to prevent to deal’s go-ahead claiming that the result of the two companies merging would be increased prices and limited choice.

AT&T has vowed to fight the move in a court hearing, to enable the ‘enormous benefits’ of the merger to be ‘fully reviewed’, according to the BBC.

AT&T needs full approval from the Justice Department as well as the Federal Communications Commission (FCC) to proceed with the deal.

 

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