Questions about how Donald Trump will govern abound. However, the new administration presents at least the possibility for Sprint (S) chairman and backer Masayoshi Son to realize his vision of merging the wireless carrier with T-Mobile USA (TMUS) .
Sprint pursued a deal with T-Mobile in 2013 and 2014. The Obama administration pushed back against a transaction that would reduce the number of national wireless carriers to three from four, despite Son's arguments in the media that Sprint could be a stronger competitor to Verizon (VZ) and AT&T (T) . Sprint eventually dropped the matter.
With Trump's victory, the stock gained more than 13% to close at $7.11 on Wednesday and during the day set a 52-week high of $7.20. Shares pulled back 3 cents to close at $7.08 Thursday.
A Clinton administration could have taken a tougher stance than Obama's regulatory regime, Evercore ISI Head of Political Analysis Terry Haines said, because of pressure from Sen. Bernie Sanders and Sen. Elizabeth Warren.
"What you'll have with a Trump Justice Department, with oversight from a Republican House and Senate, is one where merger and acquisition activity will be viewed in a more holistic manner," Haines said, acknowledging that specifics about policy are unclear given that we don't even know who will be Attorney General. Sprint and T-Mobile could argue that the deal would benefit consumers by providing a stronger challenger to the big two carriers, he suggested, even tough it would remove a competitor from the market. "That's a big change," Haines said.