TELETRADER News
7/2, 4:00 PM (Source: TeleTrader)
more TeleTrader news

T-Mobile, Dish agree divestiture deal - reports

T-Mobile US Inc. and Dish Network Corp. have reached a divestiture agreement that takes the former one step closer to gaining government approval for its merger with Sprint Corp, CNBC reported on Monday citing sources familiar with the matter.

However, the sources said that the government remains concerned that the divestiture agreement would not adequately ensure that Dish would represent meaningful competition between Sprint and T-Mobile following their merger. Instead, DoJ officials want the latter and its parent company Deutsche Telekom to sell assets such as wireless spectrum licenses and make other concessions to help maintain competition in the cellular market. The sources added that the requests have been met with opposition by T-Mobile, which wants to limit Dish's spectrum capacity.

The reports come after people familiar with the matter previously said that the DoJ would in all likelihood approve the two companies' divestiture agreement. Dish was reportedly close to a deal to acquire $6 billion of Sprint and T-Mobile's assets.

Sprint's shares jumped 4.28% at 10:01 am ET following the news while T-Mobile's were up 0.98% at 10:14 am ET.

Breaking the News / DZ