Shares of Sprint Corp. gained more than 8% during intraday trade on Tuesday after a CNBC report reignited speculation that the mobile company is in talks to merge with T-Mobile US Inc. . Shares of T-Mobile were up more than 3%, and shares of other mobile carriers also saw a bump, with Verizon Communication Inc. shares up nearly 3% and AT&T Inc. shares up close to 2%. In May, a Bloomberg report, citing sources, said that executives at Sprint had “informal contact” with T-Mobile about a possible merger. The wireless industry has become increasingly competitive and crowded, requiring companies to look for acquisition and/or partnership opportunities. Deal talks in the industry had been on hold until April 27 this year due to the government’s spectrum auction. Chairman of Sprint-owner SoftBank, Masayoshi Son, and Deutsche Telekom Chief Executive Tim Hoettges, which owns T-Mobile, told investors following the hold to expect talk of industry consolidation, and T-Mobile said it expected to be involved. Shares of T-Mobile are up nearly 12%, while Sprint shares are down about 2% and the S&P 500 index are up close to 12%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News