MetroPCS Shares Leap On Deutsche Telekom Bid
By David Zielenziger | October 3, 2012 6:09 AM EST
Shares of MetroPCS Communications (NYSE: PCS) leaped as much as 25 percent Tuesday after Deutsche Telekom (Pink: DYTGY) said it was bidding for a majority stake in the company.
Shares of the Richardson, Tex., mobile carrier eased back to close at $13.49, up $1.97, or 17 percent, valuing the company at $4.9 billion. That’s a far cry from the $39 billion the German company planned to sell its T-Mobile USA unit to AT&T Inc. (NYSE: T), the No. 1 telecommunications carrier, a year ago, in a deal that collapsed under U.S. government pressure.
The alliance would add 9.3 million customers to T-Mobile's 33.9 million, bolstering the Bellevue, Wash., company against AT&T; the Verizon Wireless unit of Verizon Communications (NYSE: VZ); the No. 2 U.S. carrier, and Sprint-Nextel Corp. (NYSE: S), the No. 3 carrier.
It also could be seen as a way for Deutsche Telekom to effectively gain a U.S. listing, by shifting T-Mobile into MetroPCS.
Deutsche Telekom, though, cautioned that it needs to resolve “significant issues” before making further announcements. Its U.S. shares closed up 32 cents at $12.55.
To contact the editor, e-mail: