Sprint’s Counteroffer for MetroPCS: Merger and Acquisitions Update

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Sprint Nextel Corporation (NYSE:S) might make a counteroffer for MetroPCS Communications (NYSE:PCS), according to a Guggenheim Securities analyst, which possibility has apparently moved shares of the latter up on Friday. MetroPCS agreed in October to merge withT-Mobile USA (DTEGF.PK), a division of Deutsche Telekom. Through the terms, the German parent firm will hold 74 percent of the combined entity and make a cash payment of $1.5 billion to MetroPCS shareholders. Analyst Shing Yin estimates that Sprint might offer between $12 and $13 a share for MetroPCS within the next four weeks as the former extended its deadline Thursday for a proxy statement linked to a separate deal with Japan’s Softbank Corp., reinforcing the notion that Sprint is preparing a MetroPCS bid. Sprint, the third-largest provider, now has 15.2 percent of the market, but the two largest carriers, Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T), hold a combined 58.5 percent.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business