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Sprint reveals true motive for opposing AT&T deal: It wants T-Mobile for itself

September 21, 2011

During a Goldman Sachs investor conference in New York today, Sprint chief executive Dan Hesse hinted that Sprint may try to buy T-Mobile if the AT&T merger falls through.

This news is not only revealing but also hypocritical as Sprint has positioned itself as the main opponent to the AT&T deal.

Hesse tried to make the case that somehow the U.S. Department of Justice would consent to the elimination of one of four national competitors, which in the worlds of the DOJ complaint would “result in a significant loss of competition, if the buyer were #3 Sprint and not #2 AT&T.

“Hesse disagreed with the notion that the U.S. Justice Department’s attempt to block the merger would bode poorly for Sprint’s own attempt to buy T-Mobile if the AT&T deal were to fall through.” [CNET.com, 9/21/11]

“My view is [the DOJ] would look at other consolidation very differently,” Hesse said. “I am not saying whether Sprint or T-Mobile, if this didn’t happen, would merge or not or whether we have an interest in that or not. But you could make a very, very strong argument.” [MarketWatch.com, 9/21/11]

While Hesse attempted to be coy about Sprint’s true objectives, his message to Wall Street was clear. Forget what we may be telling regulators in Washington about the anti-competitive impact of a merger among top wireless companies. Our real aim is to block an AT&T/T-Mobile combination so that Sprint can come in and buy T-Mobile’s assets at a bargain price.

Posted by EyeOnSprint in: Fact Check Merger

  • Titus Carlos Renatos Mendell

    I suppose AT&T motives are not profit driven. I was born in 1928 and remeber the days of AT&T monopoly. We do not want to go back to those days.
    I believe this site is sponsored by the same people that brought us this recession and the necessity to bail out many financial intstitutions. And AT&T seeking hight stock prices. It chairman, President and Board are Profiioteeering gangsters like all of Wall Street. I am with Sprint 100% and will cotribute to them until AT&T is put int its place.

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