T-Mobile, Sprint merger teed up for trial
A conclusion to the winding saga that is the T-Mobile/Sprint merger is inching closer, with an antitrust trial against several state attorneys general suing to block the deal slated to start Dec 9. Apparently, T-Mobile is eyeing a price cut for what started as a $26.5 billion deal, since Sprint’s finical situation has worsened as uncertainty about a tie-up between the nation’s third and fourth largest wireless carriers lingered. Sprint has also been recently impacted by disclosures that it incorrectly claimed subsidies for inactive Lifeline subscribers. Renegotiating terms is something that’s been widely expected on Wall Street. At the forefront though, is an antitrust case that New Street analysts dubbed “a trial of the century,” which is poised to be heard by Judge Victor Marrero in the US Southern District of New York. “While different analysts have different points of view of the market consequences, all agree that either result will have a market impact far into the future,” wrote the New Street team in an extensive research note reviewing pretrial memos filed the parties. And win or lose, the decision will also have “long-reaching significance for antitrust policy in our sector and others,” the team said.
T-Mobile, Sprint merger teed up for trial T-Mobile is eyeing a price cut in its merger with Sprint, sources say (CNBC) T-Mobile, Sprint Head to Court to Defend Merger (WSJ)