Sprint Fights AT&T Deal, Wells Fargo Ends Debit Rewards Program

Strategic Insights -

Sprint Nextel, the nation's third-largest wireless carrier, has urged government officials to block AT&T Inc.'s planned acquisition of T-Mobile USA from Germany's Deutsche Telekom AG. This move comes as two other major economic stories emerged, with disposable income falling due to increased consumer prices and Wells Fargo announcing the end of its debit rewards program. Meanwhile, eBay has agreed to buy GSI Commerce for $2.4 billion, and the housing market remains a concern, with pending home sales rising but not enough to signal a rebound.

Key Takeaways:

  • Sprint Nextel has urged government officials to block AT&T Inc.'s planned $39 billion acquisition of T-Mobile USA, citing a duopoly market dominance.
  • Disposable income fell in February as consumer prices jumped by the largest amount in 21/2 years, with the personal consumption expenditure index increasing 0.4 percent for the month.
  • Wells Fargo will stop enrolling new customers in its debit card rewards program as of April 15 due to pending regulation limiting merchant fees.
  • eBay Inc. will pay $2.4 billion for GSI Commerce, aiming to bolster its ability to connect buyers and sellers worldwide.
  • Pending home sales rose 2.1 percent in February to a reading of 90.8, according to the National Association of Realtors' pending home sales index.
  • Sales agreements for homes increased in every region except the Northeast, with uneven sales across the country.
  • Stocks closed with slight losses Monday after falling in the last half-hour of trading, despite early gains driven by economic reports.

Statistics:

  • The proposed acquisition of T-Mobile USA by AT&T Inc. is valued at $39 billion.
  • Disposable income fell in February, with consumer prices increasing by the largest amount in 21/2 years.
  • The personal consumption expenditure index increased 0.4 percent for the month, the largest monthly gain since July 2008.
  • Wells Fargo will stop enrolling new customers in its debit rewards program as of April 15.
  • eBay Inc. will pay $2.4 billion for GSI Commerce.
  • Pending home sales rose 2.1 percent in February to a reading of 90.8.
  • Sales agreements for homes increased in every region except the Northeast.

Sources:

  • "The MORNING LINE" - Sprint fights AT&T deal - Palm Beach Post wire services
  • COMMERCE DEPARTMENT - Real disposable income falls - Palm Beach Post wire services
  • WELLS FARGO - Axes debit rewards - Palm Beach Post wire services
  • eBay Inc. - to buy GSI Commerce for $2.4 billion - San Francisco Chronicle
  • National Association of Realtors - Pending home sales rise - Palm Beach Post wire services