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California May Review AT&T/T-Mobile USA Deal

By REUTERS, May 27, 2011, (Reporting by Sinead Carew in New York, Diane Bartz in Washington and Poormina Gupta in San Francisco; editing by Derek Caney)


NEW YORK (Reuters) - California regulators may open a formal examination of AT&T Inc's proposed $39 billion purchase of T-Mobile USA, a move that could delay or add conditions to approval of the deal.

If successful, the deal would create the largest U.S. mobile phone service.

To complete the deal, which many consumers and rivals including Sprint Nextel are opposing, AT&T needs approval from the U.S. Department of Justice and the U.S. Federal Communications Commission, the telecommunications regulator. State regulators can block a merger within their state.