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MetroPCS (PCS -1.9%) briefly turned positive following a Bloomberg report claiming Sprint (S...

MetroPCS (PCS -1.9%) briefly turned positive following a Bloomberg report claiming Sprint (S -3.6%) is "in the early stages of evaluating a counter offer" for MetroPCS, and could decide on whether to one-up T-Mobile's bid as early as next week. Leap Wireless (LEAP -5.5%), already pummeled yesterday, is near the day's lows following a brief spike. Sprint, which (unlike T-Mobile) uses the same 3G tech as MetroPCS, reportedly had a deal to buy the carrier in February, but its board got in the way.
Comments (1)
  • rjp2020
    , contributor
    Comments (13) | Send Message
     
    Sprint would do well to purchase several smaller companies to increase its customer base and market penetration rather than going after the large combined entity of PCS and T-Mobile. Sprint is beginning to see the end of the Nextel acquisition after years of pain. LEAP and a few others would be much easier to digest without the excessive debt that they would incur going after the T-Mobile combined entity. The much deeper pockets of DT coupled with their strategy, that seems to be unfolding, of doing and IPO of T-Mobile and either extracating themselves from the US market or pushing Sprint into the 4th position would ensure that DT would not give up in a fight. That fight, should Sprint choose to engage in it and end up the winner, would have too negative and impact on their balance sheet and therefore would have trouble with shareholder approval since shareholders have grown more and more impatient for returns.
    4 Oct 2012, 01:27 PM Reply Like
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