Deutsche Telekom Said to Hit Brakes on T-Mobile Merger
TMUS is trading near its 52-week low of $143.75 (1.3% above the low).
Summary
Bloomberg reports Deutsche Telekom, T-Mobile's majority owner, is pausing its planned merger with the US carrier. That follows Elliott building a sizeable stake in Deutsche Telekom in September and pushing against the deal. The stock is already trading near its 52-week low of $143.75, so a stalled deal removes a major structural catalyst and leaves the ownership question open. Note the 8-K filed today: director and Vice Chair G. Michael Sievert resigned from the board and its Transaction Committee effective November, a committee directly tied to deal work.
At the time of this announcement, TMUS was trading at $145.65 on NASDAQ in the Technology sector, with a market capitalization of approximately $156.2B. The 52-week trading range was $143.75 to $224.75. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.