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T-Mobile Doesn't Want Dish Merger After All?

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T-Mobile Doesn't Want Dish Merger After All?

The T-Mobile US Inc (NYSE: TMUS) - DISH Network Corp (NASDAQ: DISH) merger saga was called in to question on Tuesday after a report by New York Post.

According to the publication, Timotheus Hottges, the Chief Executive Officer of T-Mobile's parent company (and controlling shareholder) Deutsche Telekom stated that he would T-Mobile combine spectrum with Sprint Corp (NYSE: S).

Hottges comments were apparently made at an RBC Capital Markets road show in Toronto last week, according to New York Post who cited a participant at the conference as its source.

Related Link: T-Mobile, Dish Deal Good For Tower Stocks, Bad For Sprint And AT&T, BofA Says

The executive noted the value of teaming with Sprint when the FCC starts auctioning broadcast spectrum in early 2016. In addition, Dish's assets consist of unused spectrum that T-Mobile could put to use,

A T-Mobile and Sprint combination gained traction last year, but Sprint dropped its bid amid regulatory concerns and resistance from the governmental authorities. France-based Iliad also pursued an acquisition of T-Mobile and dropped its bid last October.

New York Post further added that Hottges said this Sprint strategy was tied to the belief that Comcast Corporation (NASDAQ: CMCSA) might acquire or partner with a larger T-Mobile.

However, Hottges sees things differently and suggested that a Comcast bid for the company would fail to receive regulatory approval since combining Comcast with Dish's satellite business would raise concerns.

"If you buy Dish, you kill the prospect of selling to Comcast," the participant paraphrased Hottges as saying.

Finally, New York Post disclosed that it reached out to Deutsche Telekom and a spokesman said that the quotes and paraphrases attributed to its CEO in its story are false. However, the company spokesman declined to provide commentary on why the statements are false.

Posted-In: Deutsche Telekom New York Post Timotheus HöttgesNews Rumors Best of Benzinga

 

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