Sprint Jumps on Report Deutsche Telekom Favors T-Mobile MergerBy
Sprint Corp. shares reversed losses after German newspaper Handelsblatt reported that T-Mobile US Inc.’s parent company favors a merger of the two American wireless providers.
Deutsche Telekom AG, which controls T-Mobile, aims to maintain control of the combined company after an all-stock deal with Sprint, according to Handelsblatt, which cited sources close to the German company’s management committee and board.
Sprint shares climbed 1.9 percent to $8.09 at 10:53 a.m. They had dropped as much as 2.3 percent earlier Tuesday. T-Mobile fell less than 1 percent after earlier declining as much as 2 percent.
Bloomberg reported two weeks ago that Sprint and T-Mobile were considering an all-stock deal. Sprint and T-Mobile were also talking to other potential merger partners, Bloomberg reported then, citing people familiar with the matter.
Executives of both companies have said a merger would produce billions of dollars in cost savings and help them compete against larger rivals AT&T Inc. and Verizon Communications Inc.