Uncertainty Persists on DOJ View of T-Mobile/Sprint
Rumors swirl that DOJ could part ways with the FCC and end up blocking T-Mobile’s buy of Sprint (see 1905210038). Lawyers involved in the proceeding said reports about DOJ concerns could be real or just Antitrust Division Chief Makan Delrahim…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
adding to his leverage in negotiations with the two companies. DOJ didn't comment Wednesday. Approval is now a “coin toss,” New Street’s Jonathan Chaplin told investors Wednesday after a colleague earlier gave it an 80 percent likelihood. “DOJ could take two paths: they could sue to block the deal, or they could seek additional conditions to those agreed between the parties and the FCC,” Chaplin said. In the midst of uncertainty, he downgraded Sprint to neutral. That company is “precarious, with upside to $10 [share] if the deal is approved and downside to $2, and ultimately to $0, if blocked,” Chaplin said. T-Mobile revealed Wednesday that CEO John Legere spoke with FCC Chairman Ajit Pai on Sunday, the day before the release of his statement endorsing the deal. Legere spoke with Commissioners Brendan Carr and Mike O’Rielly on Monday, said a filing in docket 18-197. The FCC has “done the heavy lifting” on conditions and support in Congress is bipartisan, said a lawyer working for the deal: “Now, it is a short putt to get the ball into the 18th hole." Others were heartened by reports that DOJ might say no. “The public record is clear that permitting T-Mobile to acquire Sprint will harm consumers and substantially reduce competition and innovation in the wireless market,” said Phillip Berenbroick, senior policy counsel at Public Knowledge: “This transaction is not even a close call under the DOJ’s prior precedents and Section 7 of the Sherman Act, and the Department of Justice should file suit to block the deal.” Sprint shares closed down 7.6 percent at $6.67 on Wednesday. That's a wider discount to the per-share takeover price than earlier this week when Pai announced he would vote "yes" on the deal.