If I was a PCS holder, and I was getting a third of the market cap in cash (ie. 1.5 Billion) plus 25% of a dicey company in T-Mobile I would not be happy - I say dicey because given the debt structure, the rate at which they are losing customers, having no iphone, still needing to spend on 4G build, being way behind on the 4G build, and facing a tough integration of networks and customer types, there is little sense that the new company will be successful, and will undoubtedly be hit hard by shorts especially at the start.....
In other words it's a real crap shoot as to what the PCS holder ends up with. I can't see that the PCS holder would be happy with this deal at all.
If Sprint can get PCS for a fair price, it's a much better fit, and it's much better for the PCS holder. In many places there are PCS stores and Sprint stores within blocks of one another, there are spectrum synergies and advantages of scale, etc. But, but, it has to go at the right price.
the point is that the Metro PCS holder cannot be happy with this very open-ended speculative deal that looks to be a loser in particular by the time the approvals go through mid 2013......that is also clearly confirmed in the market - PCS was dropping like a brick prior to the announcement that Sprint might save them.
Like I said earlier - let TM have PCS. History shows that merging disparate networks is difficult at best. also - if the rumours of Sprint considering a counter offer are correct I will sell - I think they should concentrate on their core strengths, buildout their LTE network, and work on paying down debt. An acquisition would only saddle Sprint with issues they're not fully capable of handling at this time
From a dolt who predicted $90/sh for S and it fell to $2. The PCS shareholder will get cash plus their share of the PCS/T-Mobile combined company. Now go lay down and dream up another Sprint theory like a $90 ARPU on a $79.99 plan. I'm still shaking my head on that math.
Sentiment: Strong Sell
one has to laugh at the idiocy of jugs/aka no deal, he is now talking up the New T-Mobile because that fits his purpose....nevermind the new company will have way more debt than Sprint, way less customers, no iphone, no start yet on a 4G build........one wishes that this idiot would get a clue if only that he sets a bad example of a human being, since most people do not chronically lie, distort facts, or spend 24/7 on a message board bashing a stock, all while demeaning others. Pretty poor showing.
you could be right about that....that is the element of "weighing" the costs....nothing is ever black and white on these things no matter how the stupid-class of poster like no-deal wants to paint it that way......there are trade offs and issues, always.....
I will say this, Hesse has been masterful in the turnaround of Sprint, that is clear to all but the most intentionally-blind, and Hesse was apparently willing to go forward.....
.......truely, you have the actual results and statistics to look at to evaluate the turnaround and management performance and you draw your conclusions.........but look, at any given time, in the final anlaysis, you either trust management to go forward sensibly or you don't......if you really don't, get out of the stock......it's that simple