WASHINGTON: T-Mobile US Inc is poised to win court approval for its US$26.5 billion takeover of Sprint Corp, according to a person with knowledge of the matter, defeating a state-led lawsuit that sought to block the industry-altering wireless deal.
The deal is also a victory for Dish Network Corp co-founder and Chairman Charlie Ergen, who is buying assets from the two carriers to set up a new wireless network. With his company’s core satellite TV business in decline, Ergen has amassed a trove of airwaves to build a state-of-the-art network. After the merger, T-Mobile will have more spectrum – the frequencies through which wireless signals are transmitted – than any other carrier. This larger capacity will give the combined company an advantage as the industry transitions to the next generation of wireless technology, the much-faster 5G standard.
The recent weakness in Sprint shares reflected two concerns: the possibility the courts would block the deal and the expiration of the companies’ merger accord. As far as negotiation leverage goes, Sprint’s in a tough spot, said Walt Piecyk, an analyst with LightShed Partners.“There’s really nothing else they can do.”
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