+------------------------------------------------------------------------------+
T-Mobile a Strategic Asset; Buy on Sprint-Related Weakness: JPM 2014-08-06 02:24:55.231 GMT
By Sarah Gill Aug. 6 (Bloomberg) -- Sprint dropping pursuit of T-Mobile would be positive for Dish, wireless towers, bad for other wireless carriers AT&T, Verizon: JPMorgan analyst Philip Cusick in a note. * T-Mobile is strategic asset many would like to own; $33/shr unlikely enough to acquire co.; Deutsche Telekom may reduce its stake for somewhere in high $30s if approval looks quick * Somewhat surprised of reports after S’s pursuit of TMUS despite regulatory pushback * If reports are true, may open door for Deutsche Telekom to sell part of its 67% stake to another strategic buyer, including Iliad * Leaves S few strategic options; recommends staying on sidelines with S until business starts to turn * Rates T-Mobile overweight, S neutral * Post-mkt S fell 15%, TMUS -8.9%, DISH +1.4%; SoftBank falls as much as 4.8% in Tokyo * Related stories: * Sprint Said to End T-Mobile Discussions, to Name New CEO * T-Mobile Said to Plan to Turn Down Iliad’s $15 Billion Offer * Iliad With Lower Risk Could Nab T-Mobile Underbidding Sprint
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Sarah Gill in sydney at +61-2-9777-8641 or sgill23@bloomberg.net To contact the editor responsible for this story: Jan Dahinten at +65-6212-1164 or jdahinten@bloomberg.net