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Sprint stock's record rally sends prices well above valuations of original deal's ter
Sprint stock's record rally sends prices well above valuations of original deal's terms
The record rally in Sprint Corp.'s stock after a federal judge approved its merger with fellow wireless company T-Mobile US Inc. has lifted prices way above levels seen after previous merger hurdles were cleared, but was well below current valuations under the original deal's terms. Sprint's stock raced up 73.1% to $8.31, topping the previous record one-day rally of 27.7% seen on July 25, 2016. When the merger was originally announced on Sunday, April 29, 2018, the deal terms, based on the April 27 closing prices of $6.50 for Sprint and $64.52 for T-Mobile US, valued Sprint's stock at $6.62, or 20.3% below current levels. After the Department of Justice approved the deal on July 26, 2019, Sprint shares hiked up 7.4% to $7.99. But under the same deal terms and based on T-Mobile US's current stock price--the stock is up 11.6% at $94.35--Sprint would be valued at $9.68, or 16.5% above current levels. Sprint's stock has rallied 40% over the past 12 months and T-Mobile US shares have climbed 38%, while the S&P 500 has gained 24%.
https://finance.yahoo.com/m/7d98b2f...224a/sprint-stock's-record.html?.tsrc=rss
Sprint stock's record rally sends prices well above valuations of original deal's terms
The record rally in Sprint Corp.'s stock after a federal judge approved its merger with fellow wireless company T-Mobile US Inc. has lifted prices way above levels seen after previous merger hurdles were cleared, but was well below current valuations under the original deal's terms. Sprint's stock raced up 73.1% to $8.31, topping the previous record one-day rally of 27.7% seen on July 25, 2016. When the merger was originally announced on Sunday, April 29, 2018, the deal terms, based on the April 27 closing prices of $6.50 for Sprint and $64.52 for T-Mobile US, valued Sprint's stock at $6.62, or 20.3% below current levels. After the Department of Justice approved the deal on July 26, 2019, Sprint shares hiked up 7.4% to $7.99. But under the same deal terms and based on T-Mobile US's current stock price--the stock is up 11.6% at $94.35--Sprint would be valued at $9.68, or 16.5% above current levels. Sprint's stock has rallied 40% over the past 12 months and T-Mobile US shares have climbed 38%, while the S&P 500 has gained 24%.
https://finance.yahoo.com/m/7d98b2f...224a/sprint-stock's-record.html?.tsrc=rss
