The stub trade between TDS-S and USM was ridiculous and now is getting more ridiculous. Each share of TDS and/or TDS-S holds .67 shares of USM. with the TDS-S shares, you get paid $3.30 to own TDS's net cash position and its high cash flow business.
The math: USM: $44.76 * 0.67 = $30.01 TDS-S: $26.73 >>>>> $3.28 discount to USM shares
USM is not for sale - talk to Jane McCahon in Investor Relations. The company isnt going to buy USM shares at a premium, they already control the company with a majority. They have a buyback in place... and all theyre buying back is TDS-S. This obviously makes sense, since theyre paying $3.28 below market price for the shares.
Meanwhile, TDS-S pays a dividend, and is trading at a discount to its USM holdings. This bizarre arbitrage opportunity wont last, since the company is actively buying back TDS-S shares.