- T-Mobile (NASDAQ:TMUS) is up 2.7% premarket after a new view from J.P. Morgan sees a dramatically higher chance of a strategic transaction in the next few years.
- The carrier has a 90% chance of a tie-up under a Trump administration that could usher in major telecom consolidation, the firm says. It could combine with Sprint (NYSE:S) or be acquired by a cableco, or by Dish Network (NASDAQ:DISH) or a foreign player.
- J.P. Morgan still sees the Sprint tie-up as most likely, boosting its odds for that combination to more than 35% from 10% in September. It says such a deal has a 70% chance of approval under the new administration. Meanwhile, there's a 20% chance of T-Mobile operating as a stand-alone in the next five years. it says.
- "We believe that parents SoftBank (OTCPK:SFTBY) and Deutsche Telekom (OTCQX:DTEGY) have increased their preference for a tie-up in the last six months and that the value of about $5 billion of annual synergies is enough to smooth over most disagreements on relative value," JPM's Philip Cusick says.
- T-Mobile stock is building off a stellar 2016; it's up more than 52% since the start of last year.