Sprint, T-Mobile call off merger talks
Sprint (S) and T-Mobile (TMUS) are in focus after the two telecom giants called off merger talks. This marks the second time the third- and fourth-largest wireless carriers have failed to reach a deal. Sprint and T-Mobile said talks ended because they “were unable to find mutually agreeable terms.” In a statement, Sprint President and CEO and SoftBank Board member Marcelo Claure said, “We have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings and are accelerating significant investments in our network to ensure our continued growth. As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries.” Sprint shares were last trading down 12% at $5.87 a share while T-Mobile was off 5.7% at $55.58 a share.
Broadcom makes unsolicited bid for Qualcomm
Broadcom (AVGO) has offered to buy Qualcomm (QCOM) in a deal valued at $130 billion. Qualcomm shares were last trading up 1.3% to $62.61, while Broadcom’s stock was down nearly 1% at $271.12. Broadcom President and CEO Hock Tan said in a statement, “Broadcom’s proposal is compelling for stockholders and stakeholders in both companies. Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company.” Qualcomm confirmed it received the unsolicited offer from Broadcom and plans to “assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders.”
Michael Kors shares surge on earnings beat
Michael Kors (KORS) topped Wall Street earnings estimates for its 2Q FY 2018, posting adjusted earnings per share of $1.33 on revenue of $1.15 billion. Analysts were expecting a profit of 83 cents on sales of $1.05 billion. The retailer also raised its outlook for the year, a sign that the company’s turnaround plan is paying off. Michael Kors now expects total revenue for fiscal 2018 of $4.59 billion, up from its previous outlook of $4.28 billion.