Sprint Preparing a Bid for T-Mobile US

Sprint is working toward a possible bid for rival T-Mobile US, people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the US wireless market dominated by three big companies.

Sprint is studying regulatory concerns and could launch a bid in the first half of 2014, the people said. A deal could be worth more than $20 billion, depending on the size of any stake in T-Mobile that Sprint tries to buy. A merger of the third and fourth largest US carriers would create a sizable competitor to industry leaders Verizon Wireless and AT&T. But it would likely face tough opposition from antitrust authorities, who worry consumers could suffer without a fourth national competitor to keep a check on prices. Sprint hasn't yet decided whether to move ahead with a bid. Going forward despite regulators' concerns would be highly risky. Any pursuit of a bid by Sprint could be aimed at testing antitrust officials' reaction to a deal, and a bad reaction could put an end to the effort.