Tower Companies Fall Midday as T-Mobile, Sprint Near Merger
Investing.com - Communication tower stocks were lower in midday trade Monday as it looked like they will have one fewer customer soon.
The U.S. Federal Communications Commission is likely to approve T-Mobile (NASDAQ:TMUS) and Sprint's (NYSE:S) merger after FCC Chairman Ajit Pai said he would recommend approval of the deal. His endorsement makes the official approval over the next few days very likely.
Pai said he agreed to the $26.5 billion merger after the companies made a number of promises, including selling Sprint's Boost prepaid brand, a three-year buildout of the 5G network and a commitment not to raise prices while the network is being constructed.
The deal still needs to be voted on and must receive at least three approvals from the five-member agency.
American Tower (NYSE:AMT) slipped 2.2%, while Crown Castle International (NYSE:CCI) lost 3.3% and SBA Communications (NASDAQ:SBAC) declined 5%.
Meanwhile T-Mobile gained 6.4%, while Sprint jumped 25.4%.
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