Sprint rallies; banks reportedly prepping financing for T-Mobile bid

The WSJ reports at least six banks are working on financing proposals for a Sprint (S +3%) bid for T-Mobile USA (TMUS +0.7%). Sprint, whose shares jumped a week ago when the paper first reported the carrier is thinking of making an offer for its smaller rival, is now up 16% since the initial report arrived.

Financing or not, close regulatory scrutiny of a proposed merger between the third and fourth-largest U.S. mobile carriers is a given. JPMorgan noted yesterday a Dish (DISH +1.6%) bid for T-Mobile (TMUS +0.7%), also reportedly being weighed, would have much less trouble being cleared by regulators.

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Comments (5)
  • Chris DeMuth Jr.
    , contributor
    Comments (9654) | Send Message
    More on both Sprint (S) and TMo (TMUS) here: http://seekingalpha.co...
    20 Dec 2013, 12:14 PM Reply Like
  • wpdsr001
    , contributor
    Comments (63) | Send Message
    The time has come for all wireless cellular consumers to take a stand. For way to long we have had to live in a very fragmented communication system here in America.


    Part has been due to free enterprise but a large part has been due to the over zealous regulatory system. The time has come for them to back off.


    We now have a chance to create a three competitor, highly structured and financed stable group of companies to provide wireless data and voice communication in the United States.


    The regulators need to look at this potential merger not from their own self interest but from the prospective of the average United States Citizen.


    All United States Citizens and Consumers need to follow this story very closely.
    20 Dec 2013, 03:01 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1777) | Send Message
    Sprint is drowning in its own debt, CLWR debt, Softbank is drowning in its own debt and this combo wants to borrow more to buy Tmobile?


    If anyone rates any debt issued by this unholy marriage of S, CLWR, Softbank and TMUS as anything other than pure junk, they should go back to 2005 and start rating MBS tranches.


    Apparently the dismal experience of Nextel has done nothing at Sprint to dissuade taking over yet another company with dissimilar technology. And the stock is up $1.6 or almost 20% in a few days on this news, when it should be crashing and burning in fear.
    20 Dec 2013, 04:17 PM Reply Like
  • wpdsr001
    , contributor
    Comments (63) | Send Message
    Sorry you see it that way but for traders that think only about trading and nothing else I can understand.


    From a different point of view I see the long over due consolidation of the wireless and data industry.


    With four, five or six wireless providers all we have to look forward to is more manipulator traders.


    What about creating an industry with solid players, respectable stocks and dividends.


    We see things differently.
    20 Dec 2013, 05:10 PM Reply Like
  • thesahibzada
    , contributor
    Comments (747) | Send Message
    consolidation is the key in this environment and there is nothing wrong with taking on more debt for that purpose of which such debt would be paid in the coming several years. If the banks did not think so then the news would have never hit the wire to begin with. and TMUS is a hot stock especially with this news of a potential likely merger.
    21 Dec 2013, 03:19 PM Reply Like
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