lundi 14 septembre 2009

M&A report boosts shares of Sprint Nextel

Mon Sep 14, 2009 6:50am EDT

FRANKFURT (Reuters) - Shares in Sprint Nextel (S.N) soared in Frankfurt (S.F) on Monday, boosted by a newspaper report that Deutsche Telekom (DTEGn.DE) is mulling a bid for the company.

By 0724 GMT (3:24 a.m. EDT), Frankfurt-listed shares in Sprint Nextel jumped 14.2 percent, while shares in Deutsche Telekom dropped 1.7 percent. The pan-European DJ STOXX Telcom Index .SXKP was 1.8 percent lower.

"Even though strategically it would be the best move forward since quite some time for (Deutsche Telekom), it will weigh on the share price firstly because of that potential capital raising effort but secondly because of the time span needed to return the U.S. peer to profitability," Heino Ruland, strategist at Ruland Research wrote in a note. (Reporting by Christoph Steitz)

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