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Börse Express – ROUNDUP / mega deal in danger: US judge decides on T-Mobile merger

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In the US process of merging the
Telekom subsidiary T-Mobile US with the
smaller rival Sprint moves closer to the decision. The judgment
will be “as soon as possible”, said the responsible
US judge Victor Marrero on Wednesday (local time) after the announcement of the
Closing speech in New York. When exactly will it happen
remained unclear, however. One thing is certain: For Telekom, it does
Antitrust litigation over $ 26 billion (€ 23.4 billion)
heavy mega deal to an uncertain match.

Thirteen states and the Washington region want the in
April 2018 agreement between T-Mobile and Sprint
prevent. The plaintiffs fear that the merger of the third and
fourth largest US mobile operator harms the competition, causing job losses
and could cause price increases. The heavyweights
New York and California-led alliance crosses, though
the US government has already conditionally approved the deal and also
the FCC industry regulator has already given the green light.

T-Mobile lawyer David Gelfand called for judge Marrero in his
final statement on waving through the merger. The plaintiffs
would have “completely failed” to prove that the merger
a shame to the competition. In fact, consumers would benefit
Gelfand affirmed: “Lower costs, lower prices” – see above
loud the program, with which T-Mobile and Sprint the US market leaders
Verizon and AT&T wanted to heat up.
Plaintiff’s lawyer Glenn Pomerantz saw it differently and appealed
Marrero: “We only have four national competitors – and we
need each of them. “

New York City’s powerful Attorney General Letitia James, the
Alliance of plaintiffs with their California counterpart Xavier Becerra
was self-confident on the sidelines of the hearing. “I am
confident that we will win, “she told reporters
the Manhattan court. The case is also politically explosive,
since the resistance to the fusion of democratically governed
States going out against the republican
Government of U.S. President Donald Trump.

At the beginning of the week, T-Mobile and Sprint had Marrero in one
Court motion summoned permission from the federal government in
Washington sufficient in the decision to merge
To give weight. The Justice Department did the transaction “as
national enforcer of antitrust laws “and is said to be
Conclusion that the competition is not significant
restrict, wrote the lawyers of the companies. Whether the
Let Richter be impressed by it remains to be seen.

Although Marrero – who asked no questions at the closing speech
and in view of the hours and sometimes technically very complex
Lectures seemed to doze off temporarily – a quick verdict promised
the decision could drag on. Most
Process observers don’t expect it until February. Both
Two-week court hearings also took place in December
Telekom boss Tim Höttges and T-Mobile boss John Legere in
Testimony strengthened for the merger, but skepticism waned
on Wall Street too. Analyst Paul Gallant from the investment bank
Cowen & Co recently saw a 60 percent chance that Marrero would
Deal blocked./hbr/DP/zb

 ISIN  DE0005557508  US00206R1023  US92343V1044  US8725901040

AXC0044 2020-01-16 / 06: 35

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