Federal court to begin hearing motions regarding proposed purchase of T-Mobile by AT&T


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The U.S. Justice Department's efforts to block the AT&T ( T ) acquisition of T-Mobile were scheduled to begin legal procedures today when a federal judge in Washington will listen to motions, according to the International Business Times.

The government's position is that making AT&T even bigger will not be good for competition. Competitor cellular services like Verizon ( VZ ) and Sprint ( S ), respectively the first - and third-biggest services, share those opinions. Sprint and the German-owned T-Mobile, the second - and fourth-largest services, agreed on the $39 million merger earlier this year and the federal government opposed the merger with an August 31 filing.

While the outcome of the antitrust efforts will not be known for several months, two high-profile officials cast their doubtful opinions on the merger's success.

"I think it'll be hard to overturn that measure," former Vice President Al Gore told The Washington Post, noting how infrequently the federal government intercedes. "Both companies will try to put it back together, but they'd be well advised to start looking at other strategies."

Bloomberg reports Larry Cohen, president of the Communications Workers of America, told German publication Focus that the likelihood of a federal court overruling the Department of Justice is roughly 20 percent.

The federal judge tasked with presiding over the case has signaled a preference to settle the case rather than conduct a trial, according to the International Business Times. The trial is tentatively scheduled for February 2012.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines Business
Referenced Stocks: S , T , VZ

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