Goldman Sachs (GS) had everything to gain by disrupting the AT&T, T-Mobile merger
As AT&T (NYSE: T) struggled to receive regulatory approval, the highly publicized AT&T, T-Mobile merger fell through. Now that the company has been forced to call off the merger and pay a mandatory $6 billion break-up fee, T-Mobile is up for grabs. Deutsche Telekom is now considering other strategic options for T-Mobile. Given the government's monopoly concerns, would the next logical option be merging with Sprint (NYSE: S)?
Curiously enough, Goldman Sachs (NYSE: GS) advised Sprint when merger talks began. Now, the tables favor Goldman Sachs and its clients. At the time, JP Morgan (NYSE: JPM), which advised AT&T, was the number one mergers and acquisitions advisor. Now that the AT&T merger is dissolute, JP Morgan has lost market share in M&A and Goldman Sachs has another chance at pulling through for its client, Sprint.
Goldman is notorious for having a large number of alumni in the U.S. Federal Government. Is it possible that the House of Goldman flexed its influential arm to convince regulators to scrutinize the AT&T, T-Mobile merger?
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