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MetroPCS (PCS -5.8%) dives after Bloomberg reports Sprint (S +0.8%) is "holding off on an...

MetroPCS (PCS -5.8%) dives after Bloomberg reports Sprint (S +0.8%) is "holding off on an immediate counterbid," and wants to look at Deutsche Telekom's regulatory filing for the MetroPCS/T-Mobile deal (expected in a month or two) before making a move. Sprint reportedly offered $8B (including debt) for MetroPCS, which currently has a market cap of $4.3B and $2.4B in net debt, earlier this year. Since then, Sprint's shares have surged, possibly enabling an offer with less equity dilution.
Comments (2)
  • bd4uandu
    , contributor
    Comments (1829) | Send Message
     
    Oh oh
    10 Oct 2012, 01:19 PM Reply Like
  • AggGrow
    , contributor
    Comments (191) | Send Message
     
    Exactly! Sprint does NOT need to rush this. Let DT move this deal along at their own pace.

     

    The only reason such a deal is bad for Sprint is that it takes a possible target off the table. The joint entity will be no more or less formidable that the two independent ones - maybe less so for the first year or two due to the integration complexities that they are absolutely going to endure. This is not the time to knee-jerk an overpayment for an entity that is not nearly as valuable or accretive to Sprint as Clearwire.
    10 Oct 2012, 01:58 PM Reply Like
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