When AT&T (NYSE:T) proposed to acquire Deutsche Telekom's (Nasdaq:DTEGY) U.S. subsidiary T-Mobile and combine the #2 and #4 wireless service providers into the #1 provider, it seemed like a bold and risky move. The risk on this deal has just ratcheted upward in a major way, as the Department of Justice has dug in its heels and filed suit to block the deal on antitrust grounds. The high break-up fee that AT&T owes DT if the deal falls through gives the company strong incentive to fight this one out, but the odds of success are not looking great.
Department of Justice Itching for a Fight
The Department of Justice is adamant that it does not want this deal to go through. Keep in mind, the FCC just asked AT&T for more information about a month ago and by all accounts the agency is not even close to finishing its review of the transaction. The Department of Justice doesn't seem to care, though, and has already decided to oppose this deal through the courts.
To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/ATT-Will-Have-To-Fight-The-Government-For-T-Mobile-T-S-VZ-AMT-CELL-LEAP-PCS0905.aspx
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