Kaufman Bros. Comments On Rumored Sprint (S) T-Mobile Tie-up

Kaufman Bros. weighed in on media reports today that Sprint (NYSE: S) and T-Mobile have held discussions about a potential merger agreement.

Kaufman Bros.'s Ben Abramovitz said a deal "would be a high risk proposition for Sprint at this time." Abramovitz said he would rather not see a tie-up a this time and "believe investors most likely feel the same."

T-Mobile continues to lose post-paid wireless customers with declining EBITDA, in addition to lacking a 4G strategy. They also use GSM, which is not not compatible with Sprint's current two technologies (CDMA and iDEN).

"Sprint has spent the last five years dealing with the Nextel acquisition debacle and we believe a merger with another wireless carrier is not a good idea at this time," Abramovitz said. "We would like to see Sprint avoid a merger with T-Mobile at this point and focus on the execution of its current business initiatives."

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