Sprint’s Fate: Either No T-Mobile Deal or a Lower Deal Price (1)

Shares of Sprint Corp., meant to be acquired by T-Mobile US Inc. in a pending $26.5 billion takeover, spent the past year in a steady swoon -- and that was fine with Deutsche Telekom AG, T-Mobile’s parent company.

Federal regulators have approved the combination of the two smallest national wireless carriers, but a group of state attorneys general has sued to block the deal, saying it could reduce competition and harm consumers. A federal judge has heard testimony from both sides and is expected to return with a decision within weeks.

Sprint’s value has eroded as the deal ...