The Obama administration sued to block AT&T Inc's (T.N) $39 billion acquisition of wireless rival T-Mobile on concerns it would harm competition, launching its biggest challenge yet to a takeover and dealing the carrier a potentially costly blow. AT&T, led by Chief Executive Randall Stephenson, 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 of AT&T, the No. 2 U.S. carrier behind Verizon Wireless, fell as much as 5.4 percent. If AT&T's purchase of the No. 4 carrier T-Mobile USA falls through, it may have to pay a huge break-up fee and benefits, such as spectrum grants, worth an estimated $6 billion to Deutsche Telekom (DTEGn.DE). The Justice Department in a lawsuit filed on Wednesday said eliminating T-Mobile as a competitor would be disastrous for consumers and 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 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, 28001700 shares of T exchange hands on a given day and today's volume is recorded at 112508304.
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