White House backs action that could ent AT&T suit

The Reagan administration is supporting legislation that would permit the Justice Department to drop its antitrust suit against American Telephone & Telegraph Company -- thus allowing AT&T to remain the world's largest company. In the first disclosure of its position, the Justice Department unsuccessfully asked a federal judge to delay trial for 11 months to allow the legislation to move through Congress.

The case against the company will continue, despite legislation which is likely to deregulate and restructure the telecommunic ations industry.

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