Deutsche Telekom, the parent company of T-Mobile US (TMUS) - Get T-Mobile US, Inc. Report, wants to renegotiate the terms of T-Mobile's acquisition of Sprint (S) - Get SentinelOne, Inc. Class A Report since Sprint shares have declined since the deal was proposed in 2018, reports said.
The renegotiation talks are expected to start soon, Bloomberg reported, citing people familiar with the matter. The Financial Times also reported that Deutsche Telekom was seeking to change the Sprint takeover terms but didn't provide specifics on a renegotiated price.
The talks would follow this week's decision by a federal court judge to approve the merger of the two telecommunications giants over the objections of several state attorneys general.
The ruling from Judge Victor Marrero of the U.S. District Court for Southern New York on the $26 billion tie-up allows the third- and fourth-largest U.S. wireless carriers to combine following nearly two years of disputes related to competition and pricing concerns.
"Having been tasked with predicting the future state of the national and local (retail wireless) markets both with and without the merger, and relying on both the evidence at trial and the various judicial tools available, the Court concludes that the proposed merger is not reasonably likely to substantially lessen competition," Judge Marrero wrote in his 173-page ruling.
“T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the judge wrote. The industry's two largest players are Verizon Communications (VZ) - Get Verizon Communications Inc. Report and AT&T (T) - Get AT&T Inc. Report.
Sprint shares jumped 78% on Tuesday, the day the deal received court approval, and clawed back about $15 billion of market value.
In premarket trading Thursday, Sprint fell 4.65% to $8.20 while T-Mobile declined 0.7% to $95.
TheStreet's Eric Jhonsa wrote that while legitimate concerns exist about the merger's potential impact on wireless pricing, "the deal could ultimately do a lot of good for a U.S. broadband market where competition, pricing and availability are often far from ideal."