DT/Sprint: A bargain headache

Deutsche Telekom would have its work cut out with Sprint Nextel. The German telecom operator, already the fourth largest wireless player in the US, is eyeing a bid for the troubled third-place operator. Squishing the two together would catapult DT to pole position in the US, but a deal won’t be easy to pull off. Trading at an enterprise value of E27bn ($42bn), Sprint looks affordable for DT. The German company’s debt is currently just under 2 times ebitda, at the bottom of its desired range of ...