Sprint and T-Mobile had been in talks, but French wireless company Iliad entered the mix last week with a $15 billion offer for 56.6% of the fourth-largest U.S. wireless carrier. T-Mobile rebuffed this proposal, but Sprint withdrew its offer on Tuesday.
Iliad might now move forward with its original $15 billion proposal thanks to Sprint's actions, according to The Wall Street Journal. Furthermore, Iliad reportedly does not feel it needs to increase its offer now that Sprint is out of the running.
T-Mobile was down 6.46% to $31.72 at 11:19 a.m. More than 8.4 million shares had changed hands, compared to the average volume of 4,162,600.
TheStreet Ratings team rates T-MOBILE US INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."