Time Warner shares fell Thursday after a newspaper reported which the Department of Justice is actually considering an antitrust lawsuit to block AT&T’s acquisition of the media company.
Time Warner share cost was down 4.1 percent after The Wall Street Journal reported which the department’s antitrust division is actually preparing for litigation in case which decides to sue to block the deal. AT&T’s stock was down 1.2 percent.
At the same time, the department and also also also the companies are discussing possible terms which would likely allow the deal to receive the government’s approval, the Journal reported, citing people familiar with the matter.
AT&T representatives have met with Justice officials in recent weeks, and also also also the department hasn’t made a final decision, nevertheless the two sides aren’t close to an agreement, the Journal’s sources said.
“When the DOJ reviews any transaction, which is actually common and also also also expected for both sides to prepare for all possible scenarios,” AT&T said in a statement. “For over 40 years, vertical mergers like which one have always been approved because they benefit consumers without removing any competitors by the market. While we won’t comment on our discussions with DOJ, we see no reason inside the law or the facts why which transaction should be an exception.”
Time Warner and also also also the Department of Justice declined comment.
AT&T reached an agreement tobuy Time Warner for more than $85 billion last October. In July, sources told CNBC the deal could close in as soon as 60 days.
Read the full Wall Street Journal story here.