Sprint, T-Mobile stocks slide as reports cast doubts on merger

  • Sprint, T-Mobile stocks slide as reports cast doubts on merger

Sprint, T-Mobile stocks slide as reports cast doubts on merger

The rumored T-Mobile Sprint merger, which is just about old enough to vote, has reportedly been called off. Last week, there was word that both USA based carriers and their respective corporate parents (Deutsche Telekom is the majority owner of T-Mobile) had worked out the broad outline of a transaction which would have left Deutsche Telekom as the majority owner of the combined company.

US regulators' concerns thwarted the companies' previous deal effort in 2014.

NEW YORK-Shares of Sprint and T-Mobile have tumbled as several news reports cast doubt on a long-expected deal between the two wireless carriers.

Deutsche Telekom, based in Bonn, Germany, has maintained throughout the talks this year with SoftBank that it should maintain control of the combined company.

In the past three days, the companies have been unable to get past differences over valuation, according to a person close to T-Mobile parent Deutsche Telekom AG, who asked not to be identified discussing private information. At a board meeting reportedly held on Friday, SoftBank made a decision to put the kibosh on the merger talks and will supposedly tell Deutsche Telekom tomorrow.

T-Mobile CEO John Legere speaks at CES in January. T-Mobile shares were down $2.44, or 3.8 percent, at $60.50.

The two firms had held talks in 2014 on a merger but ended discussions in the face of opposition from United States regulators.

Shares of both USA wireless companies fell sharply on the report.