According to an article this morning in the Kansas City Star, Deutsche Telekom is now an analyst-favorite to swoop in and save the day for sinking US carrier Sprint. It’s no mystery that Sprint would be an ideal target for a takeover; Sprint shares are dirt cheap, down almost 50% since the start of 2008. The dollar is dirt cheap as well of course and that is one of the many reasons analysts for Merrill Lynch are pointing their divining rods at T-Mobile owner, Deutsche Telekom. The Wall Street firm is speculating that continued woes may result in further price reductions at Sprint. Because T-Mobile is generally considered the best carrier option in terms of plan pricing amongst major US carriers, Merrill Lynch analysts believe further price slashing at Sprint would put unwanted pressure on T-Mobile to compete. As Sprint continues to lose subscribers and value, an acqusition may come sooner rather than later. No comment yet from Deutsche Telekom, currently the sixth largest telephone company with over 120 million customers globally.
[Thanks to everyone who sent this in]
