Activision fell on concern that the UK may oppose the Microsoft deal

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’s legal team (NASDAQ:MSFT) is said to expect that the UK’s antitrust authority may oppose its $69 billion videogame megadeal, according to a New York Times reports on Saturday, which cited four people familiar with the matter.

The NYT updated its story later on Monday to include that Microsoft (MSFT) said it believes it has a strong case in the UK and it has not “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 transaction 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 address concerns about potential anti-competitive 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.