As reported by Bloomberg’s Todd Shields and Greg Bensinger:
Sprint Nextel Corp. (S) said it wants state agencies in California and West Virginia to follow Louisiana in scrutinizing AT&T Inc. (T)’s proposed purchase of T- Mobile USA Inc.
Third-largest U.S. wireless carrier Sprint filed a request with the California Public Utilities Commission yesterday requesting an investigation into the $39 billion transaction, the company said in an e-mail.
“This transaction is bad for consumers and bad for the economy, and we look forward to having some regulatory sunshine cast upon it,” John Taylor, a spokesman for Overland Park, Kansas-based Sprint, said in an interview. California and West Virginia should open reviews, as Louisiana has, he said.
On May 17, the Louisiana Public Service Commission voted 4- 1 to open an inquiry, Commissioner Foster Campbell said in a phone interview yesterday.
The deal needs approval from two U.S. agencies, the Justice Department and the Federal Communications Commission.
States can keep companies from transferring assets within their borders, a possibility that can lead to concessions by companies, Rebecca Arbogast, a Washington-based analyst with Stifel Nicolaus & Co., said in an e-mail. States haven’t blocked past deals, she said.