Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Judge overseeing AT&T, Time Warner merger trial hears document dispute

Published 01/19/2018, 08:37 PM
Updated 01/19/2018, 08:37 PM
© Reuters. The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City

By Diane Bartz

WASHINGTON (Reuters) - AT&T (NYSE:T), owner of DirecTV, is asking for documents from a long list of companies as part of preparation for a trial to determine if they will be allowed to buy movie and TV show maker Time Warner, their lawyer Daniel Petrocelli said in a pre-trial hearing on Friday.

The Justice Department sued in November to stop AT&T, the No. 2 U.S. wireless company, from buying Time Warner for $85 billion because of concerns that it could raise prices for rivals and pay-TV subscribers as well as hamper the development of online video. Trial is set for March 19.

Daniel Petrocelli, who represents AT&T and Time Warner, said that his team had been unable to get data requested from third parties, who had said they no longer had some of it. He asked the government, which did have the data, to return it so it could be subpoenaed.

An attorney for DISH Network Corp (NASDAQ:DISH) at the hearing identified himself to Judge Richard Leon and offered to discuss the dispute but Leon declined.

The third parties included Verizon Communications (NYSE:VZ), Comcast (NASDAQ:CMCSA), Cox, DISH, Charter, Disney and Viacom, among others, a source close to the trial said after the hearing.

Leon expressed surprise at the problem.

"So, the only copy they had, they turned over to the government?" he said, calling the situation "rather extraordinary."

Leon said that if no solution was found by noon on Monday, he would order the government to return the data to the companies so that they could then either comply with the subpoenas or fight them in court.

"I think that's a sensible approach," Petrocelli told the judge.

Fights over data are common during antitrust trials since companies that are subpoenaed frequently fear that their rivals' executives will gain access to sensitive internal data.

For its part, a lawyer for the Justice Department, Peter Schwingler, said the government was barred from giving the data to AT&T under the terms of the subpoena that they used to collect it.

Leon had given access to confidential information to the court, Justice Department lawyers and staff, service providers and AT&T and Time Warner's outside counsel.

A second government lawyer, Craig Conrath, said that he would request a stay if the U.S. Congress failed to fund the government and it shut down.

Leon said the trial would likely continue. "My natural inclination will be not to grant a stay," he said.

© Reuters. The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City

The fate of the deal has been widely followed because U.S. President Donald Trump criticized it on the campaign trail in 2016 and has repeatedly attacked the reporting of Time Warner's CNN news network. In November, Trump reiterated his opposition to the deal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.