Shares of Sprint fell as much as 12% in after-hours trading after a Wall Street Journal report on Tuesday said the merger with T-Mobile would unlikely be approved.
According to the WSJ, the carrier’s merger with T-Mobile was unlikely as currently structured and the Justice Department is unlikely to approve the $26 billion merger.
Citing sources familiar with the situation, the WSJ reported that the deal may not be approved under its current structure.
DOJ officials had reportedly questioned claims that the merger would create “important efficiencies.”
T-Mobile shares fell more than 4% on the news.
It was last year that the two companies had reached an all-stock deal to combine the companies with shareholders from both companies approving the deal this past October.
It was this past February that T-Mobile’s CEO John Legere defended the deal before Congress and said that the deal would create jobs and lower prices.
Legere took to Twitter and wrote, “The premise of this story, as summarized in the first paragraph, is simply untrue. Out of respect for the process, we have no further comment. This continues to be our policy since we announced our merger last year.”
Disclaimer: We have no position in any of these companies and have not been compensated for this article.