How did you get 2.67. Theoretically by adding value to the reduced debt and interest payments made? In the proxy papers sent they only used ebitda multiples valuation analysis. I wasn't really happy with that, would have liked to see 2-3 different valuations used. So if/when they send out a new proxy with the same valuation metric, there will be no difference in value according to this valuation since all that is reduced is the debt load and the interest rate. Am I correct?
Actually, although this offer is less than I had in mind, I may have to reconsider. This looks much better than the original offer, going to give me something to think about. I think DT could still offer more and get a decent deal; however, the significant npv of the synergies and the possibility of the combined company to perform much better than the two standalone businesses may make this a compelling offer for PCS holders. Interesting situation...
synergies never pan out the way they say they will. I need to go back and look at what value they are writing off for PCS to get to this synergy. T-Mo has said it's basically shutting down the PCS network. They just want the spectrum and customers. That Network is still being depreciated. what was the number they used to write it down?
I agree. I thought the new offer would be for at least $14. When the deal was first announced, the stock jumped to $14.51, apparently because that's what the market thought it would be worth. The $12.67 still seems too low. Maybe they are just gradually upping the offer to see at what point they can get enough shares to get the shareholder approval they need. They should have taken note of what the market thought was a reasonable price before, perhaps $14.51?