TMUS is raising $2 billion more by selling notes. They are now planning to raise $4 billion in additional capital for spectrum purchases from a "private" source.
Ghetopcs on the Tmus board believes the $2 billion raised in the second offering has something to do with Dish's $2.2 bid for Lightsquared's spectrum
Do you think TMUS might be interested in purchasing USM? They are raising $2 billion in a second offering for spectrum. I don't know who has $2 billion in spectrum to sale to Tmus in a clean deal, other than USM. I don't think S would work a deal with Tmus to sell spectrum when they are in the M&A dance with each other. Dish is the same. At&T and Verizon would be the other two. But with the rate S has been losing customers, and Tmus is gaining subs, Tmus could shortly move into 3rd place in the USA market with a purchase of USM's 5 million subs.
I guess I should put down that my guess is USM. USM's coverage footprint looks like they can fill in some TMUS holes.
TMUS just made news because they are raising $2 billion from a secondary stock offering. The stated purpose of the proceeds is for spectrum purchase. They also stated that the funds are not for the upcoming auction, but for purchase of spectrum from a private source. What other private sources are there that would be willing to sell to TMUS?? Dish still said they are interested in TMUS, but why would TMUS have a second offering if Dish is close to acquiring them. I don't think the other three big boys (Vz, T or S) are willing to part with their vaunted spectrum. I can't think of anyone else but USM working a deal with TMUS. Also, look at the 4G coverage maps. I believe that USM will fill some holes existing in TMUS's upper midwest coverage. Okay peeps, shoot some holes in the theory....
Since we are on the same page with USM, who else do you have your eye on in the consolidation game? Are you, or were you in the business?
I'm not as sure on Verizon being the sure deal, but am in agreement something will happen sooner rather than later. There is absolutely no other reason for the stock price to be behaving the way it has lately. Also, I don't think Sprint or AT&T own their own towers anymore. My memory is they sold them about a decade ago.
Every metric used on wireless companies is bad when you apply them to USM. Stock price still strong enough to maintain over $46/share. You got to ask yourself why?
Sentiment: Strong Buy
USM has once again appreciated to higher stock prices. No reason for the appreciation, except a take-over speculation. Who are the possible suitors? Sprint, AT&T, Verizon, T-Mobile and Dish. Today, phone manufacturer Motorola has reduced the price on their flagship phone, the "Moto X" for $100 at only Sprint and USM.
Funny how FBR announces their downgrade on options expiration date. After a short sell-off, the price is back in positive territory. That is two downgrades in the last two months, and the price still is rising. In My Opinion, the buyout is still intact!
OK, I understand what your saying. I'm pretty new to USM & TDS. I was in Leap, Metro PCS, and then Tmobile. I also participated in Sprint buying all their affiliates awhile back. I'm just trying to verify my limited understanding of the USM & TDS structure. I just see TDS going up proportionately with USM's eventual purchase price. Even it they don't go up as much, percentage rise may be greater at TDS due to price/market cap valuations. I invested 65-35% of the total investment with the majority going into USM, but buying some cheaper 25 calls in TDS.
But it is my understanding that TDS owns 80% of USM stock. So if you take the market caps of the two companies, TDS is way undervalued. If USM is acquired, it just drops money into TDS.
ctso4life, I agree with your analysis. FYI, At&t was able to purchase Leap after they were denied the T-Mobile merger. USM is the last decent regional left standing. I have two questions for you ctso4life. 1. Wouldn't TDS be the prudent buy? and 2. What is the probable take-out price for USM (I'm thinking around $62/share)?
Spectrum, Spectrum, Spectrum...Amen! There is absolutely no reason for the stock price to be appreciating at the rate it has in the last month. Actually bad news is released by Moody's and it doesn't even affect the price. This isn't a pump and dump.
Is there anyone out there. Usually when you have a stock rise +5% there are a lot of people hooting & hollering! I would say the tire-kicking of USM is over, now to phase II, the buyout. TDS is still selling for a steal compared to USM.
ctso4life, that is why I bought my shares in USM and TDS. Look at TDS, it's market cap is a little bit more than USM. TDS owns 80% of TDS, so in essence, your buying USM and getting the rest of the business of TDS for free. If TDS sells USM, 80% of the sell price will go straight to TDS' balance sheet.
USM reported less revenues, less profit, less customers. But the share price is going up, again today. And again today, on increased volume. What it tells me, there is someone kicking the tires on USM. All the other mid-sized carriers have been gobbled up by bigger rivals to grab their spectrum. That is my guess.