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J.P. Morgan: Telecoms probe makes Sprint/T-Mobile deal less likely

Published 04/23/2018, 11:22 AM
© Reuters.  J.P. Morgan: Telecoms probe makes Sprint/T-Mobile deal less likely
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  • The probe into potential collusion at the two U.S. wireless leaders means a much-discussed potential tie-up between Sprint (S -1.8%) and T-Mobile (TMUS -0.7%) is "a little less likely," J.P. Morgan says.
  • "We have never seen a substantial impact" from DOJ/IRS probes of fixed telecom companies and wireless providers in the past, and it would be surprising to see a painful outcome for carriers in this one, writes analyst Philip Cusick in weighing the impact on AT&T (T +0.1%) and Verizon (VZ +0.8%).
  • "However, it is worth noting that, while we see the wireless industry as highly competitive, a DoJ view that carriers are colluding could mean that a potential Sprint/T-Mobile merger would face higher scrutiny, making us somewhat less optimistic about that deal," he says.
  • Now read: How To Retire Today: Beat Rising Costs


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