AT&T faces antitrust trial as settlement time nears

After weeks of working on a settlement, the Justice Department says it canot come up with an agreement by next week to end its long-running antitrust case against American Telephone & Telegraph Company. As a result, the government told a US district judge Monday it is prepared to resume the trial in its case seeking to break up the giant Bell System.

The government's position came as a surprise to AT&T, according to a spokesman, who said the company believed the final details could be worked out by the March 2 deadline set by the judge.