Actionable news
0
All posts from Actionable news
Actionable news in S: SPRINT CORPORATION,

Sprint Stock Slump in Premarket as T-Mobile Merger Talks End

Sprint Corp. (S - Get Report) shares slumped in premarket trading Monday after merger talks with T-Mobile (TMUS - Get Report) were called off and even as its majority owner Softbank Group (SFTBY) said it would increase its stake in the U.S. carrier.

Sprint shares were down 7.8% in premarket trading, indicated to open at $6.15, after closing at $6.67 on Friday. Sprint shares have lost more than 23% over the past year.

Sprint and T-Mobile on Saturday, Nov. 4, officially called off merger talks, saying they were "were unable to find mutually agreeable terms."

Sprint CEO Marcelo Claure said the companies "recognize the benefits of scale through a potential combination" but "have agreed that it is best to move forward on our own."

Softbank on Sunday said that it intends to increase its stake in Sprint through open market transactions "or otherwise, subject to market conditions and other factors." Softbank already owns 82.87% of Sprint, according to Factset data, and said that it doesn't intend to increase its stake to more than 85%.

"We are entering an era where billions of new connected devices and sensors will come online throughout the United States," Softbank CEO and Sprint Chairman Masayoshi Son said in a statement. "Continuing to own a world class mobile network is central to our vision of ubiquitous connectivity. Sprint is a critical part of our plan to ensure that we can deliver our vision to American consumers and we are very confident in its future."


More