WSJ : U.S. Weighs Suit Against AT&T's Planned Acquisition Of Time Warner

(RTTNews) - The U.S. Justice Department is laying the groundwork for a potential lawsuit challenging AT&T Inc.'s (T) planned acquisition of Time Warner Inc. (TWX) if the government and companies can't agree on a settlement, the Wall Street Journal reported citing people familiar with the matter.

The department's antitrust division is preparing for litigation in case it decides to sue to block the deal. Simultaneously, the department and the companies are discussing possible settlement terms that would lead to the deal winning government approval with conditions attached. The two sides, however, aren't yet close to an agreement, the Journal said.

The outcome could go either way and the timing of any decision remains uncertain, the report said.