T-Mobile-Sprint merger approval might hinge on…Huawei?

However, the approval might hinge on an unexpected requirement: that Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp …

  • The T-Mobile-Sprint merger could see U.S. regulator approval as early as next week.
  • It appears the approval of the merger hinges on both companies’ parent companies refusing to use Huawei equipment.
  • Governments worldwide are rejecting the use of Huawei equipment, citing security concerns.


The long-gestating proposed merger between U.S. carriers T-Mobile and Sprint might finally gain regulatory approval as early as next week. According to a recent report from Reuters, the government regulatory bodies involved with approving the merger agree that it can move forward.

However, the approval might hinge on an unexpected requirement: that Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp (Sprint’s parent company) refuse to use Huawei equipment in their respective worldwide networks.

Both parent companies said, according to Reuters, that they are “considering” adhering to the requirement to get the deal to go through.

Currently, neither T-Mobile or Sprint use Huawei network equipment in the United States. However, both SoftBank and Deutsche Telekom use Huawei equipment for their respective networks worldwide. The approval of the T-Mobile-Sprint merger would require both companies to slowly phase out Huawei equipment currently in use and refuse to buy Huawei equipment going forward.

The source for this Reuters report says that U.S. government officials have been pressuring Deutsche Telekom, in particular, to stop using Huawei equipment, citing security concerns related to Huawei’s alleged ties to the Chinese government.

Huawei has repeatedly asserted that these security concerns are unfounded. However, several countries — including the U.S., Australia, and Japan — refuse to use Huawei equipment for all or some networking purposes.

If the T-Mobile-Sprint merger approval does go through, it would cut the “Big Four” carriers down to the “Big Three,” with the other remaining U.S. carriers being AT&T and Verizon. The combined T-Mobile-Sprint company would simply be known as T-Mobile.

NEXT: What would the T-Mobile-Sprint merger mean for you?

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Corrected: Exclusive: T-Mobile, Sprint see US security approval for deal after Huawei concessions …

Sprint’s parent, SoftBank Group Corp (9984.T), plans to replace 4G network equipment from Huawei with hardware from Nokia (NOKIA.HE) and …

WASHINGTON/NEW YORK (Reuters) – T-Mobile US Inc (TMUS.O) and Sprint Corp (S.N) expect their merger to be approved by a U.S. national security panel as early as next week, after their respective parent companies said they would consider curbing their use of equipment from China’s Huawei Technologies [HWT.UL], people familiar with the matter told Reuters.

A woman walks past a Huawei and Apple shops in Beijing, China December 12, 2018. REUTERS/Jason Lee

U.S. government officials have been pressuring T-Mobile’s German majority owner, Deutsche Telekom AG (DTEGn.DE), to stop using Huawei equipment, the sources said, over concerns that Huawei is effectively controlled by the Chinese state and its network equipment may contain “back doors” that could enable cyber espionage, something which Huawei denies.

That pressure is part of the national security review of T-Mobile’s $26 billion deal to buy U.S. rival Sprint, the sources said.

The Committee on Foreign Investment in the United States (CFIUS) has been conducting a national security review of the Sprint deal, which was announced in April. Negotiations between the two companies and the U.S. government have not been finalised and any deal could still fall through, the sources cautioned.

T-Mobile and Sprint shares were both down 1.2 percent on Friday.

Like all major U.S. wireless carriers, T-Mobile and Sprint do not use Huawei equipment, but their parent companies use Huawei gear in overseas markets.

Sprint’s parent, SoftBank Group Corp (9984.T), plans to replace 4G network equipment from Huawei with hardware from Nokia (NOKIA.HE) and Ericsson (ERICb.ST), Nikkei reported on Thursday, without citing sources.

Deutsche Telekom, Europe’s largest telecoms company, on Friday said it was reviewing its vendor plans in Germany and other European markets where it operates, given the debate on the security of Chinese network gear.

Sprint, T-Mobile, Deutsche Telekom, SoftBank and CFIUS declined to comment.

Huawei has said the security concerns are unfounded. Tensions have been heightened recently by the Dec. 1 arrest of Huawei’s chief financial officer, Meng Wanzhou, in Canada for possible extradition to the United States.

U.S. prosecutors accuse Meng of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating U.S. sanctions. Meng, who is the daughter of Huawei’s founder, has said she is innocent.

The Justice Department and Federal Communications Commission must also approve the proposed deal between the third and fourth largest U.S. wireless carriers. T-Mobile previously said it expected the deal to close in the first half of 2019.

The agreement was reached after four years of on-and-off talks that set the stage for the creation of a company that would compete more favourably with the top two wireless players, Verizon Communications Inc (VZ.N) and AT&T Inc (T.N). The United States has been using its influence to pressure companies around the world to shed Huawei as a supplier, even when it comes to their overseas operations, as it seeks primacy over China in 5G wireless technology. Huawei is the world’s biggest network equipment maker ahead of Ericsson and Nokia. New Zealand and Australia have stopped telecom operators using Huawei’s equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.

Reporting by Greg Roumeliotis and Liana Baker in New York, Diane Bartz in Washington; Writing by Chris Sanders; Editing by Bill Rigby and Daniel Wallis

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T-Mobile, Sprint consider dropping Huawei, expect US security clearance for deal: Reuters

Sprint’s parent, SoftBank Group, plans to replace 4G network equipment from Huawei with hardware from Nokia and Ericsson, Nikkei reported on …

That pressure is part of the national security review of T-Mobile’s $26 billion deal to buy U.S. rival Sprint, the sources said.

The Committee on Foreign Investment in the United States (CFIUS) has been conducting a national security review of the Sprint deal, which was announced in April. Negotiations between the two companies and the U.S. government have not been finalized and any deal could still fall through, the sources cautioned.

Sprint’s parent, SoftBank Group, plans to replace 4G network equipment from Huawei with hardware from Nokia and Ericsson, Nikkei reported on Thursday, without citing sources.

Deutsche Telekom, Europe’s largest telecoms company, on Friday said it was reviewing its vendor plans in Germany and other European markets where it operates, given the debate on the security of Chinese network gear.

Huawei has said the security concerns are unfounded. Tensions have been heightened by the arrest of Huawei’s chief financial officer in Canada for possible extradition to the United States.

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Exclusive: T-Mobile, Sprint consider dropping Huawei, see US security clearance for deal – sources

Sprint’s parent, SoftBank Group Corp, plans to replace 4G network equipment from Huawei with hardware from Nokia and Ericsson, Nikkei reported on …

By Diane Bartz, Liana B. Baker and Greg Roumeliotis

WASHINGTON/NEW YORK (Reuters) – T-Mobile US Inc and Sprint Corp expect their merger to be approved by a U.S. national security panel as early as next week, after their respective parent companies said they would consider curbing their use of equipment from China’s Huawei Technologies, people familiar with the matter told Reuters.

U.S. government officials have been pressuring T-Mobile’s German majority owner, Deutsche Telekom AG, to stop using Huawei equipment, the sources said, over concerns that Huawei is effectively controlled by the Chinese state and its network equipment may contain “back doors” that could enable cyber espionage, something which Huawei denies.

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That pressure is part of the national security review of T-Mobile’s $26 billion (20.67 billion pounds) deal to buy U.S. rival Sprint, the sources said.

The Committee on Foreign Investment in the United States (CFIUS) has been conducting a national security review of the Sprint deal, which was announced in April. Negotiations between the two companies and the U.S. government have not been finalized and any deal could still fall through, the sources cautioned.

Sprint’s parent, SoftBank Group Corp, plans to replace 4G network equipment from Huawei with hardware from Nokia and Ericsson, Nikkei reported on Thursday, without citing sources.

T-Mobile and Sprint shares were both down 1.2 percent on Friday.

Deutsche Telekom, Europe’s largest telecoms company, on Friday said it was reviewing its vendor plans in Germany and other European markets where it operates, given the debate on the security of Chinese network gear.

Huawei has said the security concerns are unfounded. Tensions have been heightened by the arrest of Huawei’s chief financial officer in Canada for possible extradition to the United States.

Sprint, T-Mobile, Deutsche Telekom, SoftBank and CFIUS declined to comment.

(Reporting by Greg Roumeliotis and Liana Baker in New York, Diane Bartz in Washington; Writing by Chris Sanders; Editing by Bill Rigby)

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Skylands Capital LLC Increased Oshkosh Corp (OSK) Stake by $4.59 Million as Shares Declined

Lodge Hill Capital Ltd Llc has invested 3.97% in Oshkosh Corporation (NYSE:OSK). Mutual Of America Mgmt Ltd Liability has 0.08% invested in …

During 2018 Q3 the big money sentiment increased to 1.25. That’s change of 0.23, from 2018Q2’s 1.02. 27 investors sold all, 103 reduced holdings as OSK ratio increased. 108 increased positions while 55 funds amassed positions. Funds hold 62.63 million shares thus 1.82% less from 2018Q2’s 63.79 million shares. 29 are owned by Wilbanks Smith & Thomas Asset Mgmt Ltd Liability Company. Guggenheim Limited Liability Corporation has invested 0.05% of its capital in Oshkosh Corporation (NYSE:OSK). White Pine Cap owns 5,845 shs or 0.15% of their US capital. Neuberger Berman Group Inc Llc reported 0% in Oshkosh Corporation (NYSE:OSK). Tributary Cap Management Ltd Liability Company has invested 0.17% of its capital in Oshkosh Corporation (NYSE:OSK). Psagot House Limited holds 0.2% or 61,686 shs in its capital. Virtu Fin Ltd Llc has 14,256 shs for 0% of their capital. Lodge Hill Capital Ltd Llc has invested 3.97% in Oshkosh Corporation (NYSE:OSK). Mutual Of America Mgmt Ltd Liability has 0.08% invested in Oshkosh Corporation (NYSE:OSK) for 76,627 shs. North Star Investment Mgmt has 0% invested in Oshkosh Corporation (NYSE:OSK). Wells Fargo & Mn has invested 0.01% in Oshkosh Corporation (NYSE:OSK). 552,412 are owned by Bank Of America De. Advisory Svcs Network Ltd has 395 shs. Amarillo Natl Bank holds 0.11% in Oshkosh Corporation (NYSE:OSK) or 3,450 shs. Endurance Wealth Mgmt Inc reported 0.01% stake.

OSK registered $633,028 net activity with 2 insider buys and 1 sale since November 16, 2018. Nerenhausen Frank R. sold 10,000 shs worth $700,000.

Based on the latest 2018Q3 regulatory filing with the SEC, Skylands Capital Llc rose its holdings in Oshkosh Corp (OSK) by 39.33%. By buying 64,700 shares Skylands Capital Llc made the stock sank with 9.11%. The hedge fund is holding 229,200 shares, compared to the 164,500 from the previous quarter. And the announced value of the auto manufacturing company is $16.33M for the 2018Q3. $4.59B is Oshkosh Corp’s market cap. Lastly it traded at $63.79.Since December 14, 2017 it’s 27.56% down thus downtrending. OSK underperformed by 27.56% the S&P500.

Skylands Capital Llc manages about $986.41M and $773.94 million US Long portfolio. According to a filing the fund reduced its stake in Union Pac Corp (NYSE:UNP) by 28,875 shares to 427,025 shares, valued at $69.53 million in 2018Q3. Skylands Capital Llc has cut its stake in Walgreens Boots Alliance Inc and also reduced its holding in Signet Jewelers Limited (NYSE:SIG) by 51,450 shares in the quarter, for a total of 28,300 shares.

For more Oshkosh Corporation (NYSE:OSK) news brought out briefly go to: Seekingalpha.com, Seekingalpha.com, Fool.com, Seekingalpha.com or Businesswire.com. The titles are as follows: “Navistar Has A Tough Earnings Ahead – Seeking Alpha” brought out on December 13, 2018, “Goldman gloom hits Navistar and Oshkosh – Seeking Alpha” on December 10, 2018, “3 Top Defense Stocks to Watch in December – Motley Fool” with a publish date: December 10, 2018, “Oshkosh Is Best Avoided – Seeking Alpha” and the last “Oshkosh Corporation Honored as One of the Best Places to Work by Glassdoor for Second Consecutive Year – Business Wire” with publication date: December 05, 2018.

Oshkosh Corporation (NYSE:OSK) Ratings Coverage

In total 7 analysts cover Oshkosh (NYSE:OSK). “Buy” rating has 3, “Sell” are 1, while 3 are “Hold”. (NYSE:OSK) has 43% bullish analysts. 7 are the (NYSE:OSK)’s ratings reports on 14 Dec 2018 according to StockzIntelligence Inc. On Wednesday, August 1 the rating was maintained by Stifel Nicolaus with “Buy”. The stock rating was maintained by Credit Suisse with “Neutral” on Wednesday, August 1. On Friday, August 17 the stock of Oshkosh Corporation (NYSE:OSK) has “Neutral” rating given by Bank of America. On Monday, December 10 the firm has “Sell” rating given by Goldman Sachs. On Wednesday, August 1 the stock of Oshkosh Corporation (NYSE:OSK) has “Overweight” rating given by KeyBanc Capital Markets. On Wednesday, September 5 the company was maintained by Deutsche Bank.

Oshkosh Corporation (NYSE:OSK) Institutional Investors Chart

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