Reuters Insider - Justice staff recommends blocking Sprint-T-Mobile deal
23/05/2019 05:13
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_kkzcv24f&referenceId=tag:reuters.com,2019:newsml_OVAFZGPL7_930&pageId=ReutersNews Source: Reuters Insider Description: Staff at the Justice Department's antitrust division recommends the agency block T-Mobile US' $26 billion acquisition of Sprint, according to sources. Fred Katayama reports. Short Link: https://reut.rs/2YHJEPe Video Transcript: Wires crossed in Washington over a mammoth telecom deal. Sources say Antitrust Theft at the Justice Department recommended the agency baulked T-Mobile US' $26 billion acquisition of Sprint, a merger that would create the US' third largest wireless carrier after Verizon and AT&T. They fear the newly-combined company would not cut prices and improve service as aggressively as swashbuckling T-Mobile had done as an independent company. This development comes just two days after another agency, the Federal Communications Commission, reached an agreement in principle to bless the merger. That's most unusual because the FCC almost always publicly agrees with the Justice Department on merger reviews. T-Mobile and Sprint did not respond to requests for comment. Sources tell Reuters the final decision, however, rests with political appointees at the Justice Department and they're expected to make a final decision in about a month. Makan Delrahim, Head of the Antitrust Division, and investors may remember that he was the one who unsuccessfully sued to try to block AT&T's acquisition of Time Warner. Shares of both Sprint and T-Mobile, which surged two days ago on the FCC news, dropped on Wednesday