AT&T, T-Mobile merger suffers setback

WASHINGTON, Dec. 9 (UPI) -- AT&T's proposed purchase of T-Mobile suffered a blow Friday as the U.S. Department of Justice asked a judge to delay its lawsuit to block it, analysts said.

AT&T had hoped to win in court against the Justice Department as a way to salvage its $39 billion bid for the fourth-largest cellphone company, seeing a court victory as a way to persuade a skeptical Federal Communications Commission to approve the merger, The Washington Post reported.

U.S. District Court Judge Ellen Huvelle had some harsh words for AT&T's plan, calling it "presumptuous" for the wireless giant to think it could "use" a court trial to influence the thinking of FCC officials.

Attorneys for AT&T told Huvelle they were not using her court as leverage with the FCC as they reiterated the need to go to trial quickly.

AT&T withdrew its FCC application last month to concentrate on a court victory with Justice first and would then reapply with the FCC, executives had said.

"At this moment, [the Justice Department] does not think you are a serious opponent without an application at the FCC," Huvelle said. "Don't you understand that this 'strategy' has a slight aura of using the court?"

If the judge sides with the Justice Department, AT&T would have even fewer options left, the Post reported.