Deutsche Telekom's (DTEGn.DE) hopes of ending its chequered U.S. adventure with a speedy $39 billion sale to AT&T (T.N) were dashed on Wednesday when the U.S. government sued to block the deal. The German telecoms company for years was looking for a way out of its T-Mobile USA business that had long ago ceased to be a source of growth -- and the AT&T deal, announced in March, seemed like the answer to its prayers. The expected $25 billion cash proceeds have already been earmarked to pay down debt, purchase back 5 billion euros' ($7.2 billion) worth of shares and underpin a generous dividend payout strategy. Now Deutsche Telekom faces a long delay at best, and may be driven back into the arms of Sprint Nextel (S.N) -- a less suitable partner for whom T-Mobile USA would not be worth nearly as much now as it was to AT&T in March. "We believe that the likelihood for a good and fast U.S. solution has decreased massively," DZ Bank analyst Joeri Sels wrote in a note, cutting his target price to 10 euros from 12 euros and demoting the stock to "soft buy" from "buy.'
AT&T Inc. is a holding company. The Company is a provider of telecommunications services in the United States and worldwide. Shares of T fell by 3.92% or $-1.16/share to $28.46. In the past year, the shares have traded as low as $27.06 and as high as $31.94. On average, 28001700 shares of T exchange hands on a given day and today's volume is recorded at 106191920.
Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S traded higher by 5.92% or $0.21/share to $3.76. In the past year, the shares have traded as low as $2.98 and as high as $6.45. On average, 61107000 shares of S exchange hands on a given day and today's volume is recorded at 195534720.
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