Yahoo Finance Sprint, T-Mobile Fall After Reports That DOJ Could Block Merger
Investing.com - The Sprint and T-Mobile merger could be old news if they don’t settle with the U.S. Justice Department next week, CNBC reported Thursday.
The two telecommunication companies have agreed to a series of concessions to win over the Justice Department, which include selling prepaid brand Boost.
However, the companies have yet to sell it off and are stuck in discussions to sell Boost to Dish.
If they don’t make a deal next week, then the DoJ is prepared to sue to try and block the $26.5 billion deal, CNBC reported, citing sources.
At the core of the issue is restriction over who can buy divested assets if they are sold in the futures, with T-Mobile and Deutsche Telekom (DE:DTEGn) not wanting them to go to a cable or technology company.
Federal Communications Commission Chairman Ajit Pai has given his approval in principle, but a lawsuit was filed in June by a group of U.S. state attorneys who claim the deal will cost consumers more than $4.5 billion a year.
T-Mobile US Inc (NASDAQ:TMUS) fell 1.8%, while Sprint Corp (NYSE:S) slumped 3%.
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