Stock Trading

SPRINT NXTEL CP S Chart looks to be shaping up and coming off of a possible bottom here Must hold 3.74 imo.

Ahead of the Bell: Sprint shares surge
Sprint Nextel shares surge after report that Deutsche Telekom is exploring bid
On Monday September 14, 2009, 8:39 am EDT
NEW YORK (AP) -- Shares of Sprint Nextel Corp. surged in premarket trading Monday after the U.K.'s Sunday Daily Telegraph reported Deutsche Telekom AG is considering a bid for the U.S. phone carrier.

Sprint, the country's third largest wireless service provider, has been struggling to hold on to customers because of a reputation for poor service and customer support.

Its stock took off ahead of regular trading Monday, with shares up rose 82 cents, or 22 percent, to $4.59. The stock has traded between $1.35 and $7.57 over the past year.

The Telegraph reported Sunday that Germany's Deutsche Telekom, which operates cell phone provider T-Mobile USA, has hired banking advisers to explore a bid for Sprint. The company's shares were down 20 cents, or 1.4 percent, to $13.67 in premarket trading.

Citi Investment Research analyst Michael Rollins put the likelihood of an acquisition at under 30 percent in a report Monday.

Rollins said such a takeover would faces risks in integrating the companies' technology, clearing regulatory hurdles and maintaining good credit terms as Sprint's cash flow comes under pressure from a declining subscriber base.

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