T-Mobile has shown its bad side with its efforts to acquire MetroPCS (PCS), underpaying for the PCS spectrum while leaving the remaining company undercapitalized, all to the benefit of Deutsche Telekom (OTCPK:DTEGF).
T-Mobile is offering PCS shareholders cash from PCS' own balance sheet and a 26% equity stake of the new debt-laden company led by a management team that has not been able to break their own free fall. What is the Board of PCS thinking, and what should shareholders do?
Since the announcement of the deal, the market is up over 7% while PCS is down over 10%, and PCS' EV/LTM EBITDA multiples are now beneath industry peers. It's clear that the market does not think this...
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