ATVI - Activision falls on report that Microsoft expects UK antitrust will oppose deal (update)

Update 7:50pm: Updates shares, adds Microsoft comment to NYT on UK antitrust review.

Activision ( NASDAQ: ATVI ) fell almost 5% on a report that Microsoft ( NASDAQ: MSFT ) expects the UK's antitrust authority may oppose its $69 billion videogame megadeal.

Microsoft's ( MSFT ) legal team expects the UK's Competition and Markets Authority will opposed its planned purchase of Activision ( ATVI ), according to a New York Times report on Saturday, which cited four people familiar with the matter. The European Commission may be amenable to potential remedies.

The NYT updated its story later on Monday to include that Microsoft said it believes it has a strong case in the UK and it has not been "predetermined," nor been advised by its lawyers that the merger will be blocked. Activision ( ATVI ), which also reported Q4 results on Monday, rose 0.7% in after hours trading.

The NYT report comes as the UK regulator is expected to publish its provisional findings on the transaction this week. The report also follows after Microsoft is said to have received a formal statement of objections from the European Union in regard to its planned $69 billion acquisition of Activision.

Earlier this month the UK antitrust watchdog's review of the transactio n was extended to late April from early March. The UK'S CMA in September confirmed it was taking a deeper look at the Activision deal after Microsoft failed to assuage concerns about potential anticompetitive effects.

Activision ( ATVI ) is expected to report its Q4 results after the close on Monday and CEO Bobby Kotick is scheduled to appear on CNBC on Tuesday morning.

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