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UPDATE 1-U.S. Justice Department tells T-Mobile, Sprint it opposes merger -source

-source@ (Changes sourcing, adds details on deal)

April 16 (Reuters) - The U.S. Justice Department has told T-Mobile US Inc and Sprint Corp that it opposes their planned $26 billion merger in its current form, a source familiar with the matter said on Tuesday, though a final decision has not been made.

Sprint shares fell around 9 percent after the bell as investors bet the deal would not be completed. Shares of T-Mobile fell 4 percent.

Sprint, T-Mobile and the Justice Department did not immediately respond to requests for comment.

The deal to combine the carriers, struck in April 2018, was approved by both companies shareholders in October and has received national security clearance, but still needs approval from the Justice Department and U.S. Federal Communications Commission. A number of state attorneys general are also reviewing the deal.

(Reporting by Liana Baker in New York and Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur and Will Dunham)