Sprint May Still Make Counter Offer for MetroPCS
Sometime in the Next Month, May be Too Steep for T-Mobile
Guggenheim Securities analyst Shing Yin single handedly made MetroPCS shares rise today by insisting that Sprint could make a bid of $12 to $13 per share for MetroPCS sometime within the next four weeks. According to Yin
, such an offer could be too steep for T-Mobile owner Deutsche Telekom to match while still pleasing shareholders, scrapping T-Mobile's planned merger with MetroPCS.
"To counter a $13 per share bid from Sprint, if that were to occur, we estimate DT would have to give 43 percent to 47 percent of the combined company to PCS shareholders -- likely a tough proposition for DT shareholders to accept," Yin said in an e-mail.
Sprint was believed to be close to a counter offer back in October
, and of course was a breath away from acquiring MetroPCS last February
before the deal was scrapped by the Sprint board at the last second.