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AT&T shares skid as Justice Dept says to appeal Time Warner case


(Reuters) - Shares of Inc fell 1.8 percent in trading before the bell on Friday after the said it would appeal a federal judge's approval of the telecommunication network's acquisition of

The $85.4 billion deal, first announced in October 2016, was opposed by was sued by the Justice Department on antitrust grounds, but won approval from a following a lengthy trial.

Richard Leon's ruling concluded that the government had failed to show competitive harm from the deal and urged the Justice Department not to seek a stay of his ruling saying it would be "manifestly unjust" to do so and not likely to succeed.

The government's notice of appeal was filed in the in Washington and did not disclose on what grounds it intends to challenge the approval.

"We're not as sure as everyone else that Leon's ruling will be upheld on appeal," analysts from brokerage MoffettNathanson wrote in a note.

"None of this is to suggest that the will win on appeal, of course. One would have to assume that the odds are actually relatively low. But they are not zero."

The No. 2 U.S. is already putting of content to use in promoting its new video streaming service at a time when carriers have been struggling for growth.

(Reporting by in Bengaluru; editing by Patrick Graham)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 17:55 IST