Espirito Santo: Deutsche Telekom should merge with Sprint,
Deutsche Telekom will need to find another way to build its business in the US after a merger with AT&T was disallowed, it has been argued.
Deutsche Telekom should strike a deal with Sprint to help it find success in the US market, an Espirito Santo expert has said, describing a move that could mean the company hiring merger and acquisition consultants.
Reuters quoted head of telecoms research at the company Will Draper as recommending such action after AT&T confirmed yesterday (December 19th) it would no longer pursue a deal with the organisation that had been opposed by US lawmakers.
Mr Draper was quoted as saying the German business's US arm T-Mobile USA "is just crying out for a merger with Sprint".
"That's the only long-term solution for Deutsche Telekom," the expert said, although Espirito Santo warned the company would be negatively affected initially.
After the Federal Communications Commission and the Department of Justice opposed the deal between the German company and AT&T, chief financial officer of AT&T John Stephens said at a UBS conference in New York that the firm would keep trying to secure a merger regardless.
Posted by Ken Hayes
Source: Reuters, December 20th