U. S. TO SUE TO BLOCK AT&T PURCHASE OF TIME WARNER

The U. S. Department of Justice is expected to file a lawsuit to block AT& T Inc’s US$ 85.4 billion acquisition of Time

Warner Inc, a source familiar with the matter told Reuters on Monday. The legal challenge was expected after AT&T rejected a demand by the Justice Department earlier this month to divest its DirecTV unit or Time Warner’s Turner Broadcasting — which contains news network CNN — in order to win antitrust approval. AT&T’s chief executive said then that he would defend the deal in court to win approval if necessary. The No. 2 U. S. wireless carrier struck a deal in October 2016 to buy Time Warner, which also owns the premium channel HBO and movie studio Warner Bros, in order to compete with emerging technology companies by bundling video entertainment on its mobile service. The deal is opposed by an array of consumer groups and smaller television networks.