The Obama administration on Wednesday fired a legal broadside to block AT&T Inc's (T.N) $39 billion acquisition of T-Mobile, launching its biggest challenge yet to a takeover and dealing the carrier a potentially costly blow. AT&T plans to fight the government's decision in court and analysts say it might have to make big concessions -- including selling major assets -- to mollify regulators. Shares in the No. 2 U.S. carrier behind Verizon Wireless fell as much as 5.4 percent. If the deal falls through, it may have to pay a break-up fee and benefits, such as spectrum grants, worth an estimated $6 billion. The Justice Department in a lawsuit filed in federal court said eliminating T-Mobile as a competitor would be disastrous for consumers and would raise prices, particularly because the smaller provider is considered a pioneer in low-cost service plans.
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 4.39% or $-1.3/share to $28.32. In the past year, the shares have traded as low as $27.06 and as high as $31.94. On average, 28001700 shares of T exchange hands on a given day and today's volume is recorded at 85986408.
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