tmobile was sold to at&t for 40 billion last december 2011. the feds blocked the deal on anti trust grounds.
pcs shareholders are receiving 1.5 billion in cash plus 25 percent of the merged business.
if we assume tmobile is worth 33 percent less from what at&t paid, the deal is still worth close to 10 billion to pcs shareholders, which is more than a 100 percent premium to what shares closed at today.
there will be a lot of pressure to maintain 4 national players, as opposed to 2 or 3, going forward. the issue of smartphone access and wireless services is too important to be monopolized by 2 or 3 players. the feds will make sure the new NewCo merger thrives....sprint will soon enough purchase leap, and the field will be set, with remaining battles over spectrum access and 4g buildout...
From DTEGY board.......Not so sure about that. From today's Globe and Mail -----------------------
Deutsche Telekom did not discuss a potential deal structure in its statement.
But two sources familiar with the matter said that under terms of the deal being discussed, Deutsche Telekom would contribute its T-Mobile USA operations rather than paying cash. In return it would get a stake in MetroPCS, with the option to sell that on the stock market later.
The structure, known as a reverse initial public offering, involves a private company such as T-Mobile USA gaining a public listing by acquiring a public company, said the sources who asked not to be named as they are unauthorized to speak to the media.