T-Mobile board approves up to $1.5B buyback program

Mobile Reuters

FILE PHOTO: People pass by a T-Mobile store in the Brooklyn borough of New York June 4, 2015. REUTERS/Brendan McDermid (Copyright Reuters 2017)

Dec 6 (Reuters) - U.S. wireless carrier T-Mobile US Inc said on Wednesday its board authorized a buyback program, its first-ever, for up to $1.5 billion of the company's common stock.

Continue Reading Below

The announcement comes a month after CFO Braxton Carter said the company would propose a "significant" share repurchase, a signal that the third biggest carrier in the United States is confident in its outlook after the collapse of deal talks with Sprint Corp.

Deutsche Telekom AG, which owns about 64 percent in T-Mobile, also plans to purchase additional shares, T-Mobile said on Wednesday.

The issue of control was one of several deal-breakers in the T-Mobile-Sprint talks.

By participating in a buyback Deutsche Telekom would concentrate its T-Mobile holding, strengthening its hand in any future merger talks.

The stock repurchase program would take place through Dec. 31, 2018, T-Mobile said on Wednesday.

Continue Reading Below

(Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila)

What do you think?

Click the button below to comment on this article.