San Francisco - Shares of US mobile carrier Sprint spiked sharply higher Monday following reports of a possible buyout by Germany's Deutsche Telekom AG, which operates T-Mobile USA, the country's fourth largest mobile phone network. The alliance of T-Mobile with third-placed Sprint would allow the new company to leapfrog AT&T to become the second largest carrier in the US after Verizon. But analysts said the merger could be fraught with complexity as the two companies use different technology to power their networks, and are also heavily laden with debt.
Neither company was willing to comment on the reports, which first appeared in the British newspaper The Telegraph. The newspaper reported that Deutsche Telekom had hired Deutsche Bank as an adviser for a possible bid. Citing unnamed sources, the paper said a bid for Sprint might come within a few weeks.
In morning trading, shares in Sprint jumped 13 per cent to 4.26 dollars as investors betted that any offer for the company would have to include a hefty premium to its previous
Monday, 14 September 2009
Sprint shares rise on report of Deutsche Telekom buyout
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