As we speculated yesterday, Sprint (NYSE:S) might certainly jump into the game for MetroPCS (PCS). Consolidation is a priority in this industry and Spring and T-Mobile are vying for the number 3 spot, with Sprint having a considerable lead. If Sprint can use its stock as currency for this deal so that it isn't taking on additional debt, other than MetroPCS's existing debt, the deal could make sense. There will certainly be challenges so the company needs to be price conscientious. This fluid situation will be fun to watch but at this point I'm not interested in participating on an arbitrage.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.