BONN, Germany (Reuters) – The merger between T-Mobile US (TMUS.O) and Sprint (S.N) is within reach, the head of its main owner Deutsche Telekom said, forecasting that the combined business would quickly close a valuation gap on market leaders AT&T (T.N) and Verizon (VZ.N).
Highlighting the positive market reaction after a New York judge last week dismissed a lawsuit brought by more than a dozen U.S. states trying to block the deal, CEO Tim Hoettges said the ‘new’ T-Mobile would have a market value of around $120 billion.
That compares to $274 billion for AT&T and $242 billion for Verizon, he added in remarks prepared for a news conference on Wednesday. “That is a difference of around $120 billion. I see no reason why this cannot be reduced considerably,” he said.
The three main wireless carriers would have similar customer numbers of between 140 million and 150 million, he added: “That puts us on an equal footing and in a position to ramp up attacks on the competition.”
Reporting by Douglas Busvine; Editing by Michelle Martin