Sprint tumbles after report says 10 states are suing to block its merger with T-Mobile
- Ten attorney generals from US states on Tuesday are expected to file a lawsuit in the the Southern District of New York to block the proposed merger between T-Mobile and Sprint.
- The proposed merger would combine the country's third- and fourth-largest wireless carriers.
- Sprint shares are down more than 5% following the report.
- Watch Sprint trade live.
The $146 billion merger between T-Mobile and Sprint is will reportedly face another hurdle.
Ten attorney generals from US states are preparing to file a lawsuit in the Southern District of New York to block the merger, according to the Wall Street Journal. The lawsuit is expected to be announced Tuesday at a 2 p.m. ET press conference, according to the WSJ.Following the report, Sprint was trading lower by 5.51% and T-Mobile shares were down 1.45%
T-Mobile and Sprint have already faced considerable pushback to their proposed $146 billion merger. Last month, Reuters reported Department of Justice officials recommended the merger be blocked because of their concerns it would cause T-Mobile to stop cutting prices and improving services.
Days later, Federal Communications Commission Chairman Ajit Pai announced his support for the merger under the conditions that T-Mobile divest the prepaid phone service Boost Mobile and continue to build out 5G in rural communities.
The deal, which involved T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile, would bring together the country's third- and fourth-largest wireless carriers with a total of 127 million customers.
Sprint is up 9.81% this year.