Softbank Alarming 'Price War' Statement Seen as PR; Wells Fargo Comments (S) (TMUS) (VZ) (T)
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Price: $38.60 -4.67%
Rating Summary:
18 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Rating Summary:
18 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
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Softbank's CEO Masa Son said last night on the Charlie Rose show he will start a massive price war if U.S. regulators allow Sprint (NYSE: S) and T-Mobile (NYSE: TMUS) to merge. Analyst Jennifer M. Fritzsche commented on the remarks and implications for AT&T (NYSE: T) and Verizon (NYSE: VZ).
"Specifically, Son noted he would like to make a deal happen to buy T-Mobile but has nothing official to announce. More alarmingly, if successful he would be aggressive with pricing. Son said if a merger were to happen, that the combined companies would have the scale and he would engage in a 'massive price war, not a pseudo war.' We would not be surprised to see T/VZ feel pressure on this news," said Fritzsche.
"We believe this is a targeted and very purposeful PR effort to help make Sprint's case to purchase T-Mobile. As a reminder, today at 12PM ET, Son will be conducting an event in DC. The title of the event is: The state of America's wireless communications industry and the competitive global landscape. While we would expect little comments directed toward a deal with TMUS, we expect Son to highlight the faster speeds and throughput a wireless carrier (such as Sprint) can still bring to the American consumer vs. what is available today. With the scale of TMUS, this is obviously an easier task. We will be in attendance at the event," added the analyst.
For an analyst ratings summary and ratings history on Verizon Communications click here. For more ratings news on Verizon Communications click here.
Shares of Verizon Communications closed at $47.03 yesterday.
"Specifically, Son noted he would like to make a deal happen to buy T-Mobile but has nothing official to announce. More alarmingly, if successful he would be aggressive with pricing. Son said if a merger were to happen, that the combined companies would have the scale and he would engage in a 'massive price war, not a pseudo war.' We would not be surprised to see T/VZ feel pressure on this news," said Fritzsche.
"We believe this is a targeted and very purposeful PR effort to help make Sprint's case to purchase T-Mobile. As a reminder, today at 12PM ET, Son will be conducting an event in DC. The title of the event is: The state of America's wireless communications industry and the competitive global landscape. While we would expect little comments directed toward a deal with TMUS, we expect Son to highlight the faster speeds and throughput a wireless carrier (such as Sprint) can still bring to the American consumer vs. what is available today. With the scale of TMUS, this is obviously an easier task. We will be in attendance at the event," added the analyst.
For an analyst ratings summary and ratings history on Verizon Communications click here. For more ratings news on Verizon Communications click here.
Shares of Verizon Communications closed at $47.03 yesterday.
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