Sprint (NYSE:S), with an otherwise strong year to date, has tumbled since the news. If the merger goes through, the company is likely to be worse for the wear. The stock was downgraded to “Underperform” by Robert W. Baird, with a price target of $3. If Sprint wants to grow through merger, it will either be forced to try and buy a much larger T-Mobile, or gobble up a smaller carrier like Leap Wireless (NASDAQ:LEAP). Leap, by the way, also crashing on October 4.
The wireless industry has considered other ways to consolidate. Sprint has held talks with Deutsche Telekom about a deal with T-Mobile, and the German company has considered buying another prepaid carrier, Leap Wireless International Inc. (LEAP), people familiar with the discussions said. Greg Lund, a Leap spokesman, declined to comment on those talks.