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4/16, 10:50 PM (Source: TeleTrader)
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Sprint drops 10% after T-Mobile merger is questioned by DoJ

The merger of Sprint and T-Mobile is not likely to be approved, the Wall Street Journal reported on Tuesday citing sources from the United States Department of Justice. In after hours trade, Sprint stocks fell almost 10% and T-Mobile lost 5.5%.

The report suggested that the current structure of the companies may be the issue, but no official decision has been made by the DoJ. In a meeting earlier this month, the department's staff members laid out their concerns regarding the deal and questioned the two companies' arguments that the merger would create important efficiencies for the combined company.

The merger is worth $26 billion. T-Mobile hoped to acquire Sprint by the summer.

Breaking the News / VP