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Sprint-T-Mobile Merger In The Works

|Includes:AAL, DTEGF, S, SoftBank Group (SFTBF), T, TMUS, VZ

Originally published at www.seclive.com

SoftBank (OTCPK:SFTBF), the majority owner of Sprint (NYSE:S), is said to be moving forward with plans to acquire T-Mobile (NASDAQ:TMUS). The number three and four U.S. cellular providers respectively could potentially combine to more directly compete with Verizon (NYSE:VZ) and AT&T (NYSE:T). Currently Verizon and AT&T have a combined total of over 100 million customers while T-Mobile and Sprint have a combined total of approximately 100 million customers. According to sources, the deal is in the final stages between SoftBank and T-Mobile's parent company Deutsche Telekom (OTCQX:DTEGF), and would result in SoftBank becoming the world's second-largest carrier. Many analysts in the U.S. are doubtful the Department of Justice and Federal Communications Commission will approve the deal amidst concerns of preserving a competitive marketplace. A similar deal was rejected in 2011 when AT&T attempted a purchase of T-Mobile, but the recent approval of the American Airlines and US Airways merger could indicate a greater willingness to approve.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: SFTBF, S, TMUS, VZ, T, DTEGF, AAL