Morgan Stanley Upside From Telcom M&A Deals
Trefis submits:
Morgan Stanley (MS) is expected to benefit handsomely if the AT&T deal goes through as it is the lead adviser to Deutsche Telekom (DTEGY.PK) and reportedly was instrumental in convincing AT&T (T) to bid for T-Mobile, in addition to agreeing on an expensive break up fee. [1] [2] This $39 billion deal would also help consolidate Morgan Stanley’s position at the top of the M&A league tables, besting peers like Bank of America (BAC), Goldman Sachs (GS), Citigroup (C) and Deutsche Bank (DB). [2]
Regulatory Risks Linger
The AT&T deal faces considerable regulatory risks and will face scrutiny from the the Department of Justice and Federal Communications Commissions. AT&T, which has faced regulatory hurdles in the past, is aggressive pursuing this deal as it would help to remove a competitor. However, if AT&T’s actual goal is to improve its service, many analysts feel that the money could be better spentComplete Story »
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