T-Mobile-Sprint merger draws more opposition

Bloomberg

T-Mobile US Inc.’s acquisition of Sprint Corp. drew additional opposition from states as four more attorneys general joined a lawsuit seeking to block the merger of the wireless carriers, sending Sprint shares lower.
The attorneys general of Massachusetts, Hawaii, Minnesota and Nevada are signing on to the complaint, a lawyer for New York said at a court hearing. That brings the total to 13 states and the
District of Columbia.
The states took the rare step last week of suing to block the merger before the Justice Department’s antitrust division came to a decision on the deal. The companies are trying to win the department’s approval by selling assets to Dish Network Corp. with the goal of allowing Dish to become a new wireless competitor.
“The elephant not in the room is the Justice Department,” US District Judge Victor Marrero said at the hearing in Manhattan. The department’s decision “may affect what is on the table and how long it will take to address the issues,” said the judge, who ordered the trial to begin October 7.
Sprint’s lawyer Steven Sunshine said the department’s decision on the tie-up is “likely to be imminent.”
Glenn Pomerantz, a lawyer for California, said he believes it’s possible — though unlikely — that the Justice Department could join the lawsuit if it doesn’t reach an agreement with the companies. George Cary, a lawyer for T-Mobile, told the judge he believes it’s “very unlikely” that the Justice Department would intervene in the case.
“This transaction, without regard to what happens with the Justice Department, is pro-competition,” Cary said. The deal will allow two smaller companies “to go head-to-head with the
industry leaders.”