New York Removes A Barrier to Deal -- WSJ
18 February 2020 - 7:02PM
Dow Jones News
By Drew FitzGerald
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 18, 2020).
New York Attorney General Letitia James said the state won't
appeal a federal judge's decision to allow T-Mobile US Inc. and
Sprint Corp. to merge, removing another hurdle between the
cellphone carriers and their long-planned combination.
"After a thorough analysis, New York has decided not to move
forward with an appeal in this case," Ms. James said in a statement
released Sunday. "Instead, we hope to work with all the parties to
ensure that consumers get the best pricing and service possible,
that networks are built out throughout our state, and that
good-paying jobs are created here in New York."
A federal judge in Manhattan on Tuesday ruled in favor of the
companies, which agreed nearly two years ago to a $26 billion
all-stock combination that would create a single wireless company
with a customer base rivaling AT&T Inc. and Verizon
Communications Inc.
New York and California led a coalition of states that sued in
June to block the deal. The states argued that leaving the country
with three nationwide cellular network operators would hurt
consumers, especially those with low-cost rate plans.
The U.S. Department of Justice and Federal Communications
Commission later signed off on the merger subject to certain
conditions. But a core group of states remained unconvinced.
Officials from 13 states and the District of Columbia faced off
against the companies in two-week December trial that allowed the
states to question the federal government's decisions.
California Attorney General Xavier Becerra said Tuesday that the
state coalition was "prepared to fight as long as necessary to
protect innovation and competitive costs" but stopped short of
vowing to appeal the verdict. A spokeswoman for Mr. Becerra said
the state is still reviewing its options.
Both companies face more obstacles before they can close the
deal. California's independent public utilities commission and
another U.S. district court in Washington are still reviewing the
merger.
The companies are also negotiating changes to a merger agreement
originally signed in late April 2018. T-Mobile operating chief Mike
Sievert, who is slated to take over as chief executive after
longtime CEO John Legere steps down, said the merger could close as
early as April 1.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
February 18, 2020 02:47 ET (07:47 GMT)
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