US mobile giant Sprint Corp is considering lodging a takeover bid for T-Mobile US, the country’s fourth largest mobile operator by subscribers, the Wall Street Journal has reported. The report, which cites unnamed sources, suggests that the deal could be worth more than USD20 billion, depending on how large a stake in T-Mobile Sprint attempts to buy. However, the WSJ notes that Sprint harbours serious concerns over the antitrust aspects of the deal, following the Department of Justice’s 2011 rejection of AT&T’s USD39 billion takeover of T-Mobile.
As part of the fallout from the deal AT&T was compelled to placate T-Mobile with a so-called ‘break-up fee’ of USD3 billion in cash as well as a large package of AWS mobile spectrum in 128 Cellular Market Areas (CMAs). Following the deal’s failure the resurgent T-Mobile has not only deployed a nationwide Long Term Evolution (LTE) network, but also completed the acquisition of smaller rival MetroPCS – making a takeover by Sprint seem fairly unlikely. Nevertheless, if Sprint does decide to throw caution to the wind, a concrete bid could be registered in 1H14.