Friday, October 05, 2012

Sprint may bid against T-Mobile offer on MetroPCS merger

On Wednesday T-Mobile announced a merger with MetroPCS to create a value leader in the U.S. marketplace and it appears to have gotten Sprint’s attention. According to Bloomberg Sprint is in the early stages of evaluating a bid for MetroPCS that would counter T-Mobiles (Deutsche Telekom). Sprint is busy crunching numbers to weigh feasibility on a higher offer and they could decide as early as next week if they want to pursue a deal or not.

Sprint will have their board meeting in two days to discuss the bid and one person said “It would make sense for Sprint to look at MetroPCS,” said Tom Burnett, director of research at Wall Street Access, an investment firm in New York. “The networks are compatible and that might make it easier.” Originally Sprint had abandoned their plans to buy MetroPCS after Sprint’s board rejected the transaction back in February and figured the deal could cost as much as $8 billion.