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The merger of T-Mobile and sprint in the US reappears new uncertainty

via:C114中国通信网     time:2020/2/14 15:40:16     readed:42

Deutsche Telekom has urged T-Mobile us to change the terms of its proposed merger with sprint because of sprint's poor performance in the past two years, which could further delay or even fail the troubled merger, the Financial Times reported. Two sources told the financial times that Deutsche Telekom urged Softbank, the sprint owner, to reduce the price initially agreed nearly two years ago, saying the company's share price and performance had been declining since then.

T-Mobile us and sprint announced the merger in April 2018, when they announced $26 billion in full share trading terms. However, the deal stalled as the two companies faced a series of regulatory and legal challenges.

A court decision this week appears to have ended the merger, as a judge rejected 14 attorney general's legal challenges that the merger would curb competition.

The judge presiding over the case dismissed concerns that the merger would reduce competition, noting that sprint would be at risk of bankruptcy in any case if the deal failed.

Given Sprint's troubles, Deutsche Telekom is confident it has the right to change the terms of the deal, which appears to have been driven by a judge's ruling and market opinion, the sources explained.

Under current terms, sprint shareholders will own a third of the combined company. Sprint's revenue has remained unchanged since the terms were agreed, while T-Mobile US's revenue has increased by a fifth, the Financial Times said.

If the new terms are not met, T-Mobile can also choose to abandon the deal, as a long delay means that the original offer technically expires at the end of 2019.

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