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.