Why T-Mobile US (TMUS) Stock Is Surging This Morning

NEW YORK (TheStreet) -- Shares of T-Mobile US Inc.  (TMUS) are up 5.84% to $34.99 in pre-market trade as CEO John Legere makes contingency plans in case a long talked about offer from Sprint (S) doesn't materialize, the New York Post reports.

The company, which is the country's fourth biggest wireless carrier, is offering to buy valuable spectrum from smaller rivals even though Legere might have to resell some of those same airwaves if a merger with Sprint passes regulatory requirements, sources told the Post. 

SoftBank (SFTBF), the parent of Sprint, is now expected to make a formal offer for T-Mobile next month or in August, and is said to have agreed to a $2 billion breakup fee if antitrust regulators reject a merger.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

TMUS Chart

TMUS data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers