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Sprint's (S) was just "hours away" from agreeing to an $8B acquisition of discount carrier...

  • Friday, February 24, 2012, 5:23 PM ET
    Sprint's (S) was just "hours away" from agreeing to an $8B acquisition of discount carrier MetroPCS (PCS - current market cap of $4.35B) before its board vetoed the deal, claims CNBC's David Faber. No details are given, though it's quite conceivable that MetroPCS' spectrum and 4G LTE network could interest Sprint. PCS +5.3% AH. LEAP +5%. S -0.4%.
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This news story has 5 comments:

  •  
    Why did they veto the deal?
    24 Feb 2012, 05:36 PM Reply Like
  •  
    I'd like to know that myself :). I'm guessing the valuation and Sprint's high debt load had something to do with it.
    24 Feb 2012, 05:38 PM Reply Like
  •  
    Not exactly sure how an acquisition like this fits into Sprints current 4G LTE roll out of their own (Network Vision). I am pretty sure they want to get away from running two or three different networks. Maybe this is why the board vetoed it.
    24 Feb 2012, 05:46 PM Reply Like
  •  
    Supposedly MetroPCS would have been given 1/3 ownership in the new combined company, and the MetroPCS shares were priced at a 30% premium to current price. That's a lot of ownership for 9.35 million customers... prepaid customers on the low end of the credit scale that can jump ship at any time.
    24 Feb 2012, 06:00 PM Reply Like
  •  
    My concern with this is that hey even considered such a deal.
    27 Feb 2012, 12:26 PM Reply Like
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