Analysts Say AT&T to Divest Piece of T-Mobile to Sprint
While it seems likely that AT&T is purchasing T-Mobile, at least in part, to block Sprint from doing the same, analysts are suggesting that the deal may actually put part of T-Mobile in Sprint's hands.
According to a research note from Citadel Securities on March 23, AT&T is prepared to make formidable concessions in order to obtain regulatory approval for the merger, and that these will like include divestiture of a significant portion of T-Mobile's subscribers – 40% or more.
Citadel's note states that "We would view this outcome as positive for Sprint, which we believe would be a likely bidder for the divested operations. Although not as favorable as a straight Sprint/T-Mobile merger (at a fair valuation), Sprint's ability to acquire some portions of T-Mobile would help it achieve better scale."
T-Mobile Suffered from Poor Management by Deutsche Telekom
While it appears that T-Mobile is the victim in this transaction, Strand Consult, the Danish research team, suggests that they are really only victimized by the mismanagement of their parent company, —, who should have known better. DT had already had enough experience through its European operations, the analysts said, that they could have avoided T-Mobile's woes, "if they had just been a little better at identifying and utilizing the experience and information…that they already had access to within their own international corporation".
This will most likely be a slow process towards FCC approval, so it will be some time before we know the final outcome. "There's no way the chairman's office rubber-stamps this transaction," said an FCC official. "It will be a steep climb to say the least."