Sprint shares jump amid reports of T-Mobile merger

Shares of Sprint Corp., the third-largest U.S. wireless carrier, jumped 8.3 percent amid speculation the company is getting closer to merging with rival T-Mobile USA Inc.

The stock rose to $10.79 in New York, marking the biggest one-day gain since Japan’s Soft-Bank Corp. acquired majority control of the Overland Park, Kan.-based carrier in July. The shares have almost doubled since that transaction closed.

A Sprint deal with T-Mobile would unite the third- and fourth-largest mobile-phone services in the U.S., creating a stronger competitor to Verizon Wireless and AT&T Inc. It also might curb T-Mobile’sprice-cutting tactics, leading to a healthier industry, said Jennifer Fritzsche, an analyst at Wells Fargo & Co. in Chicago.

“Part of the plan all along has been for these two - No. 3 and No. 4 - to come together,” she said in an interview on a Bloomberg Television program.

Scott Sloat, a spokesman for Sprint, declined to comment.

Business, Pages 36 on 12/28/2013

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