Ex-Trump lawyer to defend AT&T-Time Warner merger
Petrocelli, a partner at O`Melveny & Myers in Los Angeles, will be lead trial counsel for both companies if the case ends up before a judge, a spokesman for AT&T, the No. 2 U.S. wireless company, said on Thursday.
Petrocelli has represented Walt Disney Co
The AT&T-Time Warner deal has become a political flashpoint because Trump, during his presidential campaign last year, vowed to block the proposed deal and has kept up frequent sharp criticism of news network CNN, owned by Time Warner.
Trump`s top Justice Department antitrust enforcer, Makan Delrahim, in a speech to antitrust experts at the American Bar Association, appeared to close the door on Thursday to fixing deals by restricting how companies conduct business, a popular way to remedy deals.
The department is believed to prefer significant asset sales in order to gain approval for AT&T`s plan to buy Time Warner.
In the absence of a settlement, the Justice Department is expected to file an antitrust lawsuit as soon as this week to block the $85.4 billion AT&T deal.
AT&T`s chief financial officer, John Stephens, said in Barcelona on Thursday that it was unclear when the deal would close.
"As of this time, the timing of the close is uncertain," Stephens told an investor conference, adding, "We continue to believe the transaction will close."
Shares of AT&T were up 2.1 percent at $34.52 in midafternoon trading, while Time Warner rose 0.8 percent to $88.10.
The department has approached 18 state attorneys general to try to win their support for a lawsuit, a person briefed on the matter said on Wednesday.
As of Thursday, there were no indications that any states had signed on to a complaint, according to a person familiar with the matter.
AT&T, which is also a major pay-TV provider, and Time Warner have struggled to keep viewers who have flocked to online services like Netflix Inc
AT&T wants to buy Time Warner so it can bundle mobile service with video entertainment and take online advertising from Facebook Inc
Since the deal was announced, the primary concern has been that AT&T`s ownership of Time Warner content would raise costs for rival entertainment distributors - especially online - and stifle innovation.
It had been widely expected that the deal would be approved by putting some limitations on how AT&T managed the content, which is known in antitrust circles as a "behavioral remedy."
But the Justice Department`s Delrahim said Thursday that those sorts of remedies smacked of regulation and that he opposed them because they were ineffective and a drain on government resources.
"Behavioral remedies presume that the government should serve as a roving ombudsman of the affairs of business; even if we wanted to do that, we often don`t have the skills or the tools to do so effectively," he said.
Delrahim did not refer to AT&T`s plan to purchase Time Warner in his speech and did not take questions.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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