You are recommending BUY....I guess that means don't SELL, yet you're suggesting that Sommer lists T-mobile regardless of the current market conditions. Isn't there a contradiction here? Why should DT sell T-mobile when you don't want to sell DT....all because the market is in dreadful shape. It is the same market after all.
If I understand this whole situation correctly, T-Mobile won't be sold. DT will simply float a stock issue and make T-Mobile a subsidiary of DT. That can have its advantages and disadvantages. From my standpoint, I'm not sure that I want T-Mobile associated with DT considering its poor track record. JMHO today.
I have a buy rating on DT because I can easily see $18 a share when it is currently (after yesterday) trading below $15 a share. The below $15 a share that DT is trading at largely ignores the value of T-Mobile. This is very similar to ATT Wireless. When ATT spun-off ATT Wireless, if you owned ATT prior to the spin-off, you were left with shares of ATT (at about the same value as before the spin-off) and shares of ATT Wireless (which had value). It�s one of those strange situations where, the sum of the parts are greater than the whole. The money from the spin-off could be used to pay down DT debt. And some of the debt would be assumed by T-Mobile, further reducing the DT debt load. I'm not suggesting that T-Mobile list their stock regardless of the current market conditions. I'm suggesting that we can't assume that T-Mobile would be worth more next year than this year. I'm not sure if I have the facts straight, but BT must believe that November would be better than next year, otherwise they wouldn't spin-off their wireless division this year. I don�t know all of the details of the �listing� of T-Mobile. I think they may start off by issuing a tracking stock, with the intention of spinning off some day. I believe that�s how ATT did it.
I don't think BT thinks November might be a better month...I don't think they have much choice. They need funds like everyone other telecom group. Same reason DT just sold to Liberty. Just for the record...I think this is a fantastic opportunity to buy DT!!!