An interesting deal transpired Monday in the information technology sector: the formation of a monster. AT&T has purchased T-Mobile (Deutsche Telekom) in a $39 billion deal. The markets seem to like the implications of the transaction raising hope that the business environment is improving. This will create the world's largest cell phone provider, but the deal will face antitrust barriers. The deal sent Deutsche Telekom shares surging, opening 16.3% higher while AT&T shares gained 1.3%. Takeover targets, like T-Mobile, will cause a company's share price to sky rocket. The $39 billion buyout still needs approval by regulators but that liquidity is what sent shares so hire. One company pays the money out, AT&T whom hopes to see a positive reaction (didn't see as much percentage improvement), and one company receives the money, Deutsche Telekom assuming no antitrust barriers will hold it from materializing will have shares soar.
Big news in the telecom industry. But with the iPhone be available to T-Mobile customers? What are the pros and cons of keeping the two services separate? These are interesting questions to consider.
http://online.wsj.com/article/SB10001424052748703292304576213050651047200.html?mod=WSJ_hp_LEFTTopStories
http://www.bbc.co.uk/news/business-12802111
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