Deutsche Telekom (OTCQX: DTEGY) is one of Europe's leading telecommunications and information technology service companies. Deutsche Telekom is also the parent company of T-Mobile USA, one of four national wireless carriers in the U.S., with 33.7 million customers. In Europe, we are Germany?s... More
Thursday, Feb 611:16 AM
Thursday, Feb 611:16 AM| 2 Comments
- After rallying yesterday on a report Sprint (S -6.1%) is close to lining up $45B in financing for a T-Mobile USA (TMUS -5.4%) bid, Sprint and T-Mobile are selling off following a Bloomberg report stating FCC/DOJ regulators have "resisted the concept" of a merger between the carriers in preliminary talks with SoftBank's (SFTBF) Masayoshi Son, and that Son and Sprint's Dan Hesse now "plan to decide in the next few weeks whether to move ahead on a bid."
- Bloomberg adds Deutsche Telekom (DTEGY) has asked Son to "gauge regulatory sentiment" towards a merger, and that Son and DT's perception of regulatory feedback will "determine their next steps."
- In addition, SoftBank and DT are reportedly at odds over the breakup fee for any deal - SoftBank wants a small one on account of regulatory risks, DT feels differently.
- FCC and DOJ officials have already suggested they're skeptical about backing a merger between the #3 and #4 U.S. mobile carriers. While Sprint might argue the carriers need to merge to effectively compete against Verizon/AT&T, T-Mobile's recent share gains bring that claim into question.
- More on Sprint/T-Mobile
Wednesday, Feb 52:20 PM
Wednesday, Feb 52:20 PM| 12 Comments
- Sources tell dealReporter Sprint (S +6.5%) is close to obtaining $45B in financing for a T-Mobile USA (TMUS +3.9%) bid. Both Sprint and T-Mobile shares have spiked higher in response.
- The WSJ previously reported Sprint has received proposals from at least two banks for a bid that would value T-Mobile's equity at $31B. In addition to the financing needed to acquire Deutsche Telekom's (DTEGY) 67% T-Mobile equity stake, Sprint and parent SoftBank (SFTBF) will need funds to cover (and potentially refinance) T-Mobile's $20B debt load.
- The report comes as DOJ/FCC officials continue taking a skeptical view of a deal that stands to reduce the number of nationwide U.S. carriers to three.
Monday, Jan 271:48 PM
Monday, Jan 271:48 PM| 7 Comments
- During a Bloomberg TV interview, outspoken T-Mobile USA (TMUS -0.1%) CEO John Legere provided fresh hints his firm is open to merging with Sprint (S +6.5%).
- Legere: "We all need better scale and capability ... The question starts to be: How do you take the maverick and supercharge it? We either need more spectrum and capability and a lot more investment, or we need consolidation."
- Sprint and parent SoftBank (SFTBF, SFTBY) have been widely reported to be lining up financing to acquire Deutsche Telekom's (DTEGF, DTEGY) 67% T-Mobile USA stake. But regulators might object to a tie-up, particularly given T-Mobile's efforts to shake up the U.S. mobile industry via aggressive/novel pricing schemes.
- Separately, Sprint announces it has expanded its 4G LTE network to cover 40 more markets, including Milwaukee and Salt Lake City. Sprint, which is trying to neutralize Verizon and AT&T's LTE coverage leads, now offers LTE in 340 markets.
Thursday, Jan 165:20 PM
Thursday, Jan 165:20 PM| 8 Comments
- The WSJ reports Sprint (S) has "received proposals from at least two banks" for financing a T-Mobile USA (TMUS) bid, and envisions valuing T-Mobile's equity at $31B (compares favorably to a current market cap of $26B).
- Financing, of course, is only one of several challenges Sprint would face in merging with T-Mobile. The company and parent SoftBank (SFTBF) would have to negotiate a deal for Deutsche Telekom's (DTEGY, DTEGF) 67% T-Mobile stake. They would also have to win the blessing of FCC/DOJ regulators who seem to prefer having four nationwide carriers around, and appear to be pleased with T-Mobile's aggressive pricing.
- There's also the matter of Dish (DISH -2.2%), which reportedly won't stand idly if Sprint bids for T-Mobile, and could have much less trouble winning the blessing of regulators.
- In addition to acquiring Deutsche's T-Mobile stake, Sprint may need to backstop a possible refinancing of ~$20B worth of T-Mobile deal.
- S +2.8% AH. TMUS +2.3%.
Monday, Nov 112013, 8:41 AM
Monday, Nov 112013, 8:41 AM| Comment!
- Twitter (TWTR) has been started at Neutral by Sterne Agee. Shares -1.4% premarket after dropping 7% on Friday in the wake of neutral/bearish coverage launches. Shares still +58% from their $26 IPO price.
- Veeva Systems (VEEV) has received four bullish ratings and two neutral ones on underwriter coverage day. Shares +0.6%.
- American Tower (AMT) has been upgraded to Buy by Citi.
- Youku (YOKU) has been upgraded to Buy by Brean ahead of Thursday's Q3 report. Shares +3.1%.
- BT has been upgraded to Overweight by JPMorgan after outbidding Sky for the U.K. TV rights to Champions League games.
- Netgear (NTGR) has been upgraded to Sector Perform by RBC.
- Deutsche Telekom (DTEGY, DTEGF) has been cut to Sell by Goldman after striking a $729M deal to buy wireline carrier GTS Central Europe.
- Lam Research (LRCX) has been cut to Neutral by Susquehanna.
- Diodes (DIOD) has been cut to Outperform from Strong Buy by Raymond James ahead of tomorrow's Q3 report.
Monday, Apr 152013, 11:03 AMMetroPCS (PCS -3.6%) and Leap Wireless (LEAP -2.5%) slump in the wake of Dish Network's $25.5B offer for Sprint. The offer, which comes shortly after Bloomberg reported Dish had proposed a tie-up with T-Mobile USA (DTEGY.PK), removes T-Mobile/MetroPCS as an M&A target (for now, at least), and lowers the odds of an offer for Leap. Should a Dish/Sprint merger happen, it would also potentially create a tougher rival for the low-end carriers, though Sprint/SoftBank would arguably do the same. |Monday, Apr 152013, 11:03 AM| Comment!
Wednesday, Apr 102013, 6:08 PMMetroPCS (PCS) +2.5% AH after Deutsche Telekom (DTEGY.PK) submits what it calls its "best and final offer" for merging the prepaid carrier with T-Mobile USA. The new offer reduces the combined company's debt by $3.8B to $11.2B, cuts the interest rate on the debt by 50 bps, and extends the lockup on DT's stake in the company by 6 months to 18 months. The proposed ownership structure remains the same - DT would own 74% of the company, and MetroPCS shareholders 26%. (previous) |Wednesday, Apr 102013, 6:08 PM| 3 Comments
Wednesday, Apr 102013, 12:52 PMDeutsche Telekom (DTEGY.PK) is "reviewing a sweeter bid" for MetroPCS (PCS +3.8%) and could announce the terms as soon as today, the WSJ reports. Many have been expecting a higher offer to arrive since shareholder advisory firm ISS joined Paulson & Co and disgruntled MetroPCS shareholders in opposing the current deal. Bloomberg notes DT is able to monitor shareholder voting in real-time, giving it a chance to adjust its offer if it looks like the current bid will fail. (previous) |Wednesday, Apr 102013, 12:52 PM| Comment!
Thursday, Mar 282013, 11:20 AMShareholder advisory firm ISS comes out against T-Mobile USA's (DTEGY.PK) merger with Metro PCS (PCS +3.3%), agreeing with those "greedy hedge funds" who argue MetroPCS shareholders deserve better terms. Analysts now expect a sweetened bid, and David Faber reports "there does seem to be a line of thinking at Deutsche Telekom (DTEGY.PK), about whether they should raise their offer." However, he adds "sources close to D-Tel are genuine when telling me Germans are unsure whether to try to save [the MetroPCS] deal." |Thursday, Mar 282013, 11:20 AM| 2 Comments
Monday, Dec 172012, 6:37 AMVodafone (VOD) shares sink 2.9% in London after the company agreed to pay €1.4B for Dutch 4G spectrum in an auction that raised €3.8B in total from KPN, T-Mobile and Tele2, as well as from Vodafone. Investors are concerned about the amount operators are going to have to shell out in auctions across Europe, although cash-strapped governments are probably delighted. |Monday, Dec 172012, 6:37 AM| 1 Comment