The U.S. government on Wednesday sued to block AT&T Inc's (T.N) $39 billion purchase of T-Mobile USA, citing concerns it will harm competition in the wireless market and lead to higher prices. The surprise move, which was the biggest antitrust challenge yet by the Obama administration, caught the carriers by surprise and if successful would end AT&T's move to unseat Verizon Wireless as the No. 1 U.S. mobile carrier. If AT&T fails to defeat the Justice Department lawsuit, it will prove very costly -- the No. 2 carrier would have to pay T-Mobile parent Deutsche Telekom (DTEGn.DE) an estimated $6 billion in cash and other assets as part of the original deal. The announcement is a slap in the face for AT&T Chief Executive Randall Stephenson, who was poised for a career-defining deal that would allow him to emerge from the shadow of predecessor and serial acquirer Ed Whitacre.
AT&T Inc. is a holding company. The Company is a provider of telecommunications services in the United States and worldwide. Shares of T fell by 3.85% or $-1.14/share to $28.48. In the past year, the shares have traded as low as $27.06 and as high as $31.94. On average, 29289300 shares of T exchange hands on a given day and today's volume is recorded at 113009520.
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