Attempts to block merger
Earlier today, four more US states sued to block T-Mobile (TMUS) and Sprint’s (S) proposed merger deal on antitrust concerns, which pulled down their stocks. At 2:35 PM ET, T-Mobile stock was down 3.1% for the day, while Sprint stock was down 6.6%.
According to the Reuters report, “Hawaii, Massachusetts, Minnesota and Nevada will be included in an amended complaint being filed Friday.” It also said, “Lawyers for the states and the companies also proposed Oct. 7 for the start of a trial, which could last two to three weeks.”
The four states will join the ten states that had sued to stop the planned merger agreement last week. The lawsuit alleges the merger could harm competition and raise expenses for consumers.
Sprint and T-Mobile push to merge
However, T-Mobile and Sprint argue that the merger deal could boost their subscriber base, eliminate duplicate work, cut expenses, and widen their scale of operations. The deal could also help the companies combat competition from telecom rivals as well as online streaming giants like Amazon Prime and Netflix.