T-Cell CEO Legere to step down subsequent yr

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(Information) – T-Cell US Inc Chief Government Officer John Legere will step down subsequent yr, the corporate mentioned on Monday, lower than three weeks earlier than it goes to trial to find out the destiny of its deliberate $26.5 billion merger with smaller rival Dash Corp.

The third-largest U.S. wi-fi service will go to trial on Dec. 9 to battle a state attorneys normal lawsuit that alleges the merger can be dangerous to shoppers.

T-Cell mentioned Legere will stay CEO till April 30, and can be succeeded by President and Chief Working Officer Mike Sievert. Legere will proceed to be a member of T-Cell’s board.

Legere, the outspoken architect of the advertising and enterprise technique that helped T-Cell turn out to be referred to as an innovator within the wi-fi trade, mentioned the succession plan had lengthy been within the works.

“A CEO with a board that doesn’t have a very good succession plan, fails,” Legere mentioned on a convention name with analysts. “It’s Mike’s time. He’s prepared.”

T-Cell stays centered on closing the merger with Dash, Legere mentioned.

“I really feel fairly good that we’ve the premise for settling this deal, and I really feel equally good, if not higher, about successful this trial,” he added.

T-Cell has additionally been in talks with Dash to increase their merger settlement, which had expired Nov. 1. A lowered worth for Dash may doubtlessly be a part of the negotiations.

Legere mentioned Monday the corporate’s shareholders had been engaged on a brand new settlement, however mentioned he couldn’t present a timeframe.

Legere additionally mentioned he had by no means been in discussions to run WeWork, saying the information experiences had created an “awkward time frame” for T-Cell. Japan’s Softbank Group Corp is the controlling shareholder for each Dash and WeWork.

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Sievert, additionally a member of T-Cell’s board, has labored alongside Legere for the final seven years.

“It has been broadly anticipated for a while that John would exit subsequent yr, so this received’t come as a shock to anybody,” mentioned Craig Moffett, an analyst at MoffettNathanson. “And Mike has all the time been extraordinarily extremely regarded by the funding group. I count on they’ll make the transition with out lacking a beat.”

Shares of T-Cell had been little modified at $78.23 in afternoon buying and selling, whereas Dash was up 1.03%.

Reporting by Supantha Mukherjee, Sheila Dang, Munsif Vengattil and Diane Bartz; Modifying by Sriraj Kalluvila, Anil D’Silva and Dan Grebler