PCS BOD and advisers are either desperate or stupid. Let's tie our $5Bln equity valuation to an entity with no public valuation, expose us to a year of losing TMobile subs and M&A risks - with no price floor other than the $4 cash. Smart if the company is worth $4-6 per share, meaning we were on a cliff. Otherwise this will go down in history is one of the dumbest agreements to sell a good company ever. If Sprint is a no bid again, the shorts are going to drive this to the bottom fast.
Agreed, that's why the institutional holders of PCS will vote down this merger and force the company to seek other bids, which is likely. Sprint could come in and offer a mostly cash deal at $14 and walk away with PCS no problem. They would only have to pay a $150 M breakup fee. Deutsche telekom is walking away with PCS for a very cheap price. I don't think it's over quite yet though