Oppenheimer Sees Better Likelihood Of T-Mobile, Sprint Deal
Oppenheimer's Timothy Horan earlier boosted his modeled likelihood for an approval of the T-Mobile (NASDAQ: TMUS), Sprint (NYSE: S) deal. The analyst now sees approval at about 66 percent, up from 50 percent previously.
Horan believes T-Mobile execs now appear to be leaning toward making the necessary concessions, namely the resale and spin off of certain assets, a move which would effectively allow for a fourth competitor in the space.
The Oppenheimer analyst noted several risks to the approval of the deal: potential for a higher break-up fee, T-Mobile managers may keep control of the combined company.
Horan argues a tie-up between T-Mobile and DISH (NASDAQ: DISH) would have limited synergies/improvements.
Oppenheimer maintains an Outperform rating and $35 price target on shares of T-Mobile US.
T-Mobile US shares are trading up 2.4 percent to around $31.74 at last check.
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