Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sprint Moves to Stop AT&T’s Acquisition of T-Mobile

AT&T (T) is being blocked from purchasing T-Mobile from Deutsche Telekom AG reports the Wall Street Journal.

The US Justice Department Gets Involved

The US Justice Department filed a case against the acquisition on August 31, contending, “the combination of the second- and fourth-largest U.S. cellphone companies would hurt competition and likely raise prices.” This is a pretty routine way that the Justice Department ensures that competition amongst businesses within a sector remains strong so that consumers are not raked over by harmful oligarchical practices like raising prices across the board for no reason. By filing the case, the government has time to review all the ins and outs of a planned merger and can make a decision based on the best interests of the people.

Sprint Nextel Corporation (NYSE:S)

Sprint Objects

What is happening now regarding the acquisition of T-Mobile by AT&T is that Sprint is getting in on the action and filing a separate suit of its own to prevent the merger. Sprint is citing antitrust laws, buy those laws exist to protect competition, not competitors. Even the judge in the case felt compelled to ask Sprint, “Why isn’t it in your interest to let the Department of Justice do the work and not have your client pay for it?” Sprint is claiming that the merger would push the US cellular phone market into a duopoly between AT&T and Verizon Communications (VZ) in which “Sprint is marginalized and no longer able to constrain prices.” AT&T is pushing for the charges to be dismissed, saying, “Sprint knows…that a post-merger AT&T—freed of spectrum shortages that impair its ability to offer customers better services at lower prices—will be a more formidable competitor.”

U.S. District Judge Ellen Huvelle will hear arguments on Sprint’s right to sue today in Washington, D.C.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!