Merged T-Mobile US to close valuation gap on Big Two - Deutsche Telekom CEO
BONN, Germany, Feb 19 (Reuters) - The merger between T-Mobile US and Sprint 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 and Verizon.
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)
