3 Telecom Stocks Seeing Action: Verizon Gets Sued, Sprint’s Bond Record, AT&T Flirts with Europe

Verizon (NYSE:VZ): Verizon has been sued by a shareholder seeking to terminate the carrier’s $130 billion deal with Vodafone (NASDAQ:VOD) on the grounds that the price tag is too high. Natalie Gordon said Verizon shareholders are being “shortchanged” by the purchase of Vodafone’s 45 percent stake in Verizon Wireless, adding “it is evident that Verizon has overpaid” while “Wall Street analysts concur” and that Moody’s Investors Service downgraded Verizon’s credit, Reuters reports.

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Sprint Corp. (NYSE:S): Sprint’s $6.5 billion bond sale reportedly broke the record for the single largest non-investment-grade offering ever sold directly to investors in a single day, Fierce Wireless is reporting. Speculation is indicating that the company may use the money to pay down the $4 billion in debt that is owed by Clearwire. In a regulatory filing, Sprint said the offering may result in the company breaking terms of its loans unless it is “able to timely receive waivers from our lenders, reduce our outstanding indebtedness or otherwise eliminate our need to comply with Sprint Communications’ credit facility covenants,” Fierce Wireless said.

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AT&T (NYSE:T): With Vodafone pulling out of the U.S. market, the action has drawn some speculation over whether other companies, namely AT&T and Softbank, will be making bids for Europe’s largest carrier in an effort to branch out onto the continent. “[Vodafone] leaves themselves small enough to be a very attractive target,” said Robin Bienenstock, an analyst at Bernstein. “AT&T has made it clear that they’re interested in European wireless assets, and SoftBank has made it clear that it wants to be big.”

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