RobTheHillbilly
03-07-2008, 06:49 PM
Breaking Business News Posted on Thu, Mar. 06, 2008 09:02
Analysts say T-Mobile may acquire Sprint
By DAVID HAYES
The Kansas City Star
Sprint Nextel may be a takeover target, according to one of the nation’s largest investment banking firms.
Deutsche Telekom, owner of T-Mobile and the world’s sixth largest phone company, may consider acquiring Overland Park-based Sprint to block a price war in the mobile phone industry, analysts for Merrill Lynch said today.
The Wall Street firm said Sprint’s operational problems and shaky position in the U.S. wireless industry may force the company to cut prices even further to attract customers.
“In such a price war scenario, we think T-Mobile would face the most pressure, and Deutshe Telecom would see the increased urgency to drive market repair,” according to the firm’s report.
T-Mobile generally is considered to be the low-cost alternative among the top five U.S. mobile phone companies. Last week, Sprint introduced an unlimited voice and data wireless plan that undercut other U.S. companies.
A Deutsche acquisition is possible now because of Sprint’s share price and the weakness of the U.S. dollar, Lynch said.
Shares of Sprint closed Wednesday at $7, and have fallen more than 46 percent since the beginning of the year. Shares were down 1.7 percent in early trading.
Lynch, which advises its clients to sell Sprint shares, said it is not aware of any acquisition discussions.
Based in Germany, Deutsche Telekom has about 120 million subscribers worldwide
http://www.kansascity.com/382/story/519407.html
Analysts say T-Mobile may acquire Sprint
By DAVID HAYES
The Kansas City Star
Sprint Nextel may be a takeover target, according to one of the nation’s largest investment banking firms.
Deutsche Telekom, owner of T-Mobile and the world’s sixth largest phone company, may consider acquiring Overland Park-based Sprint to block a price war in the mobile phone industry, analysts for Merrill Lynch said today.
The Wall Street firm said Sprint’s operational problems and shaky position in the U.S. wireless industry may force the company to cut prices even further to attract customers.
“In such a price war scenario, we think T-Mobile would face the most pressure, and Deutshe Telecom would see the increased urgency to drive market repair,” according to the firm’s report.
T-Mobile generally is considered to be the low-cost alternative among the top five U.S. mobile phone companies. Last week, Sprint introduced an unlimited voice and data wireless plan that undercut other U.S. companies.
A Deutsche acquisition is possible now because of Sprint’s share price and the weakness of the U.S. dollar, Lynch said.
Shares of Sprint closed Wednesday at $7, and have fallen more than 46 percent since the beginning of the year. Shares were down 1.7 percent in early trading.
Lynch, which advises its clients to sell Sprint shares, said it is not aware of any acquisition discussions.
Based in Germany, Deutsche Telekom has about 120 million subscribers worldwide
http://www.kansascity.com/382/story/519407.html