(Reuters) – A U.S. district judge is expected to rule in favor of allowing Sprint and T-Mobile US to merge over the objections of a group of state attorneys general, according to two sources familiar with the matter.
Shares of Sprint surged 69% in Monday’s after-hours trade and T-Mobile stock rose 8%. Shares in T-Mobile parent Deutsche Telekom were up 4.2% at 0917 GMT on Tuesday.
U.S. District Court Judge Victor Marrero is expected to make his decision public on Tuesday, one source said.
Deutsche Telekom confirmed Tuesday as the expected date.
“We remain confident that the judge will decide in favor of the transaction,” said Europe’s largest telecoms company by revenue.
Approval of the deal would be a high profile defeat for state attorneys general, led by New York and California, who had argued that a merger of the No. 3 and No. 4 U.S. wireless carriers would lead to higher prices, especially for customers who use prepaid plans popular with people with poorer credit.
Source Reuters Tech News