At&T has warned about the negative impact of the lawsuit the Department of justice on other transactions

© Flickr / geetarchurchyМинистерство of justice. Archival photoAt&T has warned about the negative impact of the lawsuit the Department of justice on other transactions© Flickr / geetarchurchy

The claim of the justice Department, seeking a ban on the purchase of the conglomerate Time Warner Inc. AT&T may have a negative impact on other similar transactions, the head of AT&T Randall Stephenson, quoted by the Financial Times.

«This adds uncertainty to those who are considering the merger or acquisition,» said Randall journalists shortly after the appearance of messages about the complaint.

The claim «stretches the antitrust laws beyond» quoted businessman edition.

The merger of two companies can become one of the largest mergers in American history. The U.S. justice Department believe this transaction will significantly reduce competition. This, in turn, will lead to higher prices and reduced innovation. Thus, the deal will cause great harm to American consumers, according to the Ministry of justice.

The Agency in this case is against vertical merger is a situation when the company acquires another company in the same industry but operating in different stages of the production chain. At the same time, an unnamed source in the justice Ministry told the newspaper that the lawsuit will not create a precedent.

«This does not mean that we will block any vertical merger. This does not mean that we will block any transaction for a hundred billion. This means that in this particular case, we have to do», — quotes the Financial Times of his companion.

Meanwhile, Stevenson does not exclude that the criticism of CNN from the US President Donald trump could play a role and lead to resistance to the deal from the government, the newspaper writes.

Last fall, AT&T announced the agreement on the purchase of media conglomerate Time Warner, which owns, in particular, the CNN, more than $ 100 billion. This amount includes of 85.4 billion for the acquisition of Time Warner, as well as the company’s debts, which had planned to take on AT&T. the Deal has been approved by the European Commission (EC), the governments of Mexico and Chile.

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