Why Sprint Stock Dropped 12% in December
Shares of Sprint (NYSE: S) fell 12% in December, according to data from S&P Global Market Intelligence, following a December 6 report from CNBC indicating T-Mobile (NASDAQ: TMUS) is considering reducing the price of what began last year as a $26.5 billion merger agreement between the two telecom leaders. Sprint shareholders are also grappling with an ongoing lawsuit brought by a group of state attorneys, meant to prevent the deal from coming to fruition.
Of course, it's concerning enough that shareholders might need to give up some of the juicy merger premium. But while the merger was technically approved by Federal regulators late last year, arguably the greater concern for the third- and fourth-largest telecoms in the country is the prospect of the combination being scrapped altogether.
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Source Fool.com
