WASHINGTON—The U.S. Justice Department is suing to block AT&T Inc.’s proposed $39 billion takeover of T-Mobile USA, saying Wednesday that the combination of the second- and fourth-largest U.S. cellphone companies would hurt competition and likely raise prices.
The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint Nextel Corp. since it was announced in March. Shares of AT&T were down 3.7% on the announcement. Shares of Sprint, thought to be a victim of an enlarged AT&T, were 9.6% higher.
Full story: Justice Department sues to block AT&T’s takeover of T-Mobile