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So far, the lack of strong opposition to the $ 26.5 billion deal between the two wireless operators has been seen as a sign that regulatory approval is possible.
T-Mobile's US and Sprint stocks skyrocketed on Tuesday after leaders of both companies expressed optimism that their merger would be approved for $ 26.5 billion.
"We have been involved with the regulators throughout the review process and we are quite happy with our chances," T-Mobile President and CEO John Legere said in an interview Tuesday after the release of the results. third quarter by Bellevue.
Wednesday is the last day for filing opposing arguments with the Federal Communications Commission. The companies argued that they needed one from the other to keep up the pressure on the two largest operators, Verizon Communications and AT & T – and build a new wireless network. generation. Regulators need to decide whether the consolidation of the two most aggressive competitors can be beneficial for consumers.
Yet the merger is not yet a merger.
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"After all our research, analysis and analysis, we have not yet found an argument for or against which is significantly more convincing than its counter," said Craig Moffett, an analyst with MoffettNathanson. Moffett estimates that the chances of approval are 50-50.
Sprint and T-Mobile have just released optimal results as the regulatory review continues. Sprint, which has had a decade of losses, is yet to merge despite signs of stabilization.
The company based in Overland Park, Kansas, argued that without the T-Mobile deal, it would find itself in a difficult financial situation. "Sprint has not been able to take the turn regarding its major business challenges," said the company in a document filed with the FCC last month.
Sprint shares rose 10.5% on Wednesday afternoon as T-Mobile shares climbed 8.3%.
Until now, the lack of very strong opposition to the agreement has been perceived as a sign that approval is possible. And the wireless services of Comcast and Charter Communications, two cable giants, offer regulators a new point-to-point mobile competition.
Washington signs suggest a 70% probability that the deal will be approved by the regulators, according to Wells Fargo & Co. analyst Jennifer Fritzsche. "It's not out of the question to see approvals by the first quarter of 2019."
Sprint President Michel Combes expects the transaction to be completed in the first half of 2019. The companies have already obtained approval from more than half of the utility's utilities. 39 State, said Wednesday the President at a press conference.
"We have crossed a number of milestones," said Combes.
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