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Sprint and T-Mobile merger talk push stock price higher - Alldamoney

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Sprint and T-Mobile merger talk push stock price higher

According to our source, wireless carrier T-Mobile is exploring the process of taking over rival Sprint Corp in an all-stock deal, just as  SoftBank Group Corp offered to give up its majority ownership of Sprint.

Sprint and T-Mobile merger talks push stock price

Japan's SoftBank is prepared to give up control of Sprint to clinch a merger with T-Mobile, and retain a minority stake in the combined company based on an earlier report by Reuters. Based on the agreement that the telecom carriers agree for T-Mobile’s controlling shareholder Deutsche Telekom emerge the majority owner.


Shares of T-Mobile climbed up to 5.9 percent to $65.42 at Tuesday’s close, while Sprint moved 6.8 percent to $8.20.



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Their drive for the merge is to create a stronger competitor targeted at industry leader Verizon, with a 35.7 percent share, and AT&T, with 33.1 percent.
The mobile operators are discussing a stock-for-stock merger and is reported to have started the process of due diligence on each other.Though the process is still days away from an agreement as both are yet to agree on a share exchange ratio


According to our source T-Mobile executives, led by Chief Executive Officer John Legere will be in charge of both companies owned by Deutsche. The German carrier owns about 64 percent of T-Mobile and has come to rely on it as a key driver of sales and earnings growth.
Sprint and Japanese parent SoftBank in 2014 shot down the idea of a merge between the No. 3 and No. 4 carriers after sensing US regulators would quash any deal that reduced the field from four to three key players.


But discussions picked up with the trump administration earlier this year and the good news is that regulators appointed by President Donald Trump haven’t signaled an insistence on maintaining a four-player nationwide wireless market that was a feature of the previous administration.
Jonathan Bender an Acquisition lawyer with New York’s Wilk Auslander reportedly said while regulatory odds are better under the Trump administration, but still it’s “a tough call.”

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