Gabelli just wants the whole thing busted up.
When you rip out USM from TDS, TDS is trading for about NEGATIVE $5.00 per share. (TDS @ $21 - USM @ $39x 0.67 arb = -5.13). In reality, the wireline business should be trading for about POSITIVE $4-8.00 per share.
There's no way TDS buys in USM. It doesn't make logical sense, as toodeepinfxen stated. That's the tail wagging the dog.
Plus, where's the Carlson's money? Yep, you guessed it - all in TDS. They don't own a single share of USM. So why would they bother giving away free money?
1 of 3 options are going to happen here:
1) USM buys out TDS (large subsidiaries buy out tiny parents all the time - RVI and DSW is a good example)
2) TDS spins off USM
3) TDS sells itself outright, and USM goes along for the ride.
Either way, in the end TDS wins much more than USM (and that's what Gabelli wants too). Again, Carlsons control TDS. That's where their money is, and that's where yours should be.
USM's not going anywhere without TDS getting a fat payday.
Long TDS / Short USM.