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  • greekmonster101 greekmonster101 Nov 27, 2009 9:18 PM Flag

    Could TELEFONICA ....buy SPRINT....?

     

    Interesting article zorro, thanks for posting....

    I could envision a buyout by TEF.....or others....VOD for instance or DT...or others....

    The question as I see it is: are the s BOD and major shareholders willing to sell out when a reasonable argument can be made for s at $20 a share in the forseeable future......

    why $20?...look at current financials, figure eps without the depreciation for starters.....look at free cash flow and revenue.....just on that basis s is very very undervalued....

    ....going forward there's the fact of de-acts becoming re-acts as the economy recovers.....the general turnaround effort (better phones and improving service, pre-paid business) and of course 4G.......then there's iphone non-exclusivity.....potentially a floodgate opener......

    IMHO I just don't see s selling cheap...and $9 or $12 would be cheap..... for a company to buy s they will need to come up with some significant dough.....

    I'm not sure who could pull it off......not without a third party investor such as a sovereign wealth fund or in some sort of JV arrangement...DT, VOD and TEF all have a fair bit of debt....

    I still like the idea of aapl or goog...

    aapl for instance would own it at first....get more retail locations in converting sprint stores.....the network booms because they're selling the iphone on it.....

    then spin it out as an ipo as the i-network.....while still maintaining control so they can have an easy time with future regulation and keep control regarding other wireless devices......

    also spin off iden at some future point when valuations are better......the apple brand and the iphone popularity CREATE value greater than the parts.....not unlike taking a nice piece of land and putting a great house on it.....

    ....but anyway, so much for my GOOD IDEA FANTASY.....I suspect the gov't would give it a big thumbs down....

    that all being said...I'll still take $9 now..... given what it would be worth to me for my shares/calls...LOL

    This topic is deleted.
 
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