Seeking Alpha

T-Mobile continues rally: JPMorgan sees healthy M&A premium

  • A day after Reuters reported Dish (DISH +0.3%) is considering a 2014 bid for T-Mobile USA (TMUS +3.3%), JPMorgan predicts an offer for the #4 U.S. carrier would involve a $35/share price tag (a 25% premium to current levels), and that a merger would create $1B/year in synergies.
  • The firm also points out a Dish/T-Mobile merger would have much less trouble being approved by regulators than a Sprint/T-Mobile merger.
  • T-Mobile is now up 10% since the WSJ reported last Friday that Sprint is thinking about making an offer for the company.
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Comments (3)
  • Chris DeMuth Jr.
    , contributor
    Comments (6727) | Send Message
     
    We have five takeout candidate picks for 2014 and this is on that list.
    19 Dec 2013, 12:54 PM Reply Like
  • Topcat
    , contributor
    Comments (504) | Send Message
     
    Kinda troublesome though, in that Sprint uses CDMA and T-Mobile uses GSM. But maybe they keep the T-Mobile name/technology and keep them separate.
    19 Dec 2013, 03:32 PM Reply Like
  • Matt-Man
    , contributor
    Comments (696) | Send Message
     
    Both Verizon and Sprint are moving away from CDMA with LTE so in long term networks use same tech. Problem with Sprint and TMO is that they use very different frequencies so there is not much synergies on that side.

     

    Dish would bring different frequencies as well but those could be at least all LTE from day one rather than doing painful migration from legacy tech to LTE.
    19 Dec 2013, 04:05 PM Reply Like
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