Sprint likely target of Deutsche Telekom
Before the dust settled on Microsoft’s failed acquisition of Yahoo, news emerged of a possible deal involving Sprint and T-Mobile USA owner Deutsche Telekom.
T-Mobile is the fourth largest wireless company in the U.S. while Sprint ranks third. The combination would trump the market’s current leaders, Verizon Wireless and AT&T.
Mergers and acquisitions are often viewed positively by markets and investors. Sprint shareholders could definitely use the optimism! Before the M&A chat, the stock was down almost 60% since last September. Today’s speculation provided Sprint’s shares with a hefty 10% advance.
If it becomes official, this deal will have many hills to climb…for starters: antitrust issues and technology integration.
As evidenced by Yahoo’s 15% nosedive today, when big deals don’t happen, stocks suffer. Merit of the wireless merger claims has yet to be determined, but as long as rumors abound, Sprint will be fun to watch.
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POSTED IN: Acquisitions
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