Summary
- AT&T is likely to rally on an approved of the merger between T-Mobile and Sprint.
- The DOJ appears a thorn in the approval process.
- The stock has struggled since Sprint and T-Mobile became competitive at the end of 2012.
The likely best outcome for AT&T (T) is that the government allows the T-Mobile (TMUS) acquisition of Sprint (S) to close with restrictions that somewhat reduce the effectiveness of the merger. The FCC appears on board with the merger, but lots of questions still exist on the merger approval. The evidence supports a golden merger as the best outcome for AT&T's stock.
Image Source: Financial Times
FCC Approval
On Monday morning, FCC Chairman Ajit Pai came out in support of the merger between T-Mobile and Sprint. Chairman Pai posted this tweet with a link to an FCC document on the commitments of T-Mobile and Sprint to get approval.
