From Bloomberg-
MetroPCS Communications Inc. (PCS) has emerged as the frontrunner to buy assets from AT&T Inc. (T) and T- Mobile USA Inc. as those companies seek to win government approval for their $39 billion merger, according to people familiar with the matter.
Though the size of the deal isn’t yet definite, it would likely include subscribers and wireless spectrum, said the people, who couldn’t be identified because the talks aren’t yet public. The deal’s value is likely to be less than $4 billion, said one person.
AT&T approached smaller rivals including Dallas-based MetroPCS, Leap Wireless International Inc. (LEAP) and Dish Network Corp. (DISH), people familiar with the matter said last month. MetroPCS, with more than $2 billion in cash and short-term investments, has a stronger balance sheet than Leap, though Leap is still in talks with AT&T, the people said.
AT&T is seeking ways to salvage its agreement to buy T- Mobile USA from Bonn-based Deutsche Telekom AG (DTE) after the U.S. Justice Department sued on Aug. 31 to stop the deal. The talks with MetroPCS may not lead to a deal, and the Justice Department may also deem the remedies insufficient, the people said.
“Spinning off some of T-Mobile’s customers or network doesn’t really remedy the government’s issue with the merger, which is that T-Mobile is such a disruptive and significant competitor that anything which makes them no longer independent would be unacceptable,” said Glenn Manishin, a lawyer with Duane Morris LLP in Washington. “It’s unlikely that sufficient assets could be transferred to any of the regional players to make them into a national network.”
MetroPCS Said to Become Frontrunner for AT&T-T-Mobile Assets - Bloomberg
MetroPCS Communications Inc. (PCS) has emerged as the frontrunner to buy assets from AT&T Inc. (T) and T- Mobile USA Inc. as those companies seek to win government approval for their $39 billion merger, according to people familiar with the matter.
Though the size of the deal isn’t yet definite, it would likely include subscribers and wireless spectrum, said the people, who couldn’t be identified because the talks aren’t yet public. The deal’s value is likely to be less than $4 billion, said one person.
AT&T approached smaller rivals including Dallas-based MetroPCS, Leap Wireless International Inc. (LEAP) and Dish Network Corp. (DISH), people familiar with the matter said last month. MetroPCS, with more than $2 billion in cash and short-term investments, has a stronger balance sheet than Leap, though Leap is still in talks with AT&T, the people said.
AT&T is seeking ways to salvage its agreement to buy T- Mobile USA from Bonn-based Deutsche Telekom AG (DTE) after the U.S. Justice Department sued on Aug. 31 to stop the deal. The talks with MetroPCS may not lead to a deal, and the Justice Department may also deem the remedies insufficient, the people said.
“Spinning off some of T-Mobile’s customers or network doesn’t really remedy the government’s issue with the merger, which is that T-Mobile is such a disruptive and significant competitor that anything which makes them no longer independent would be unacceptable,” said Glenn Manishin, a lawyer with Duane Morris LLP in Washington. “It’s unlikely that sufficient assets could be transferred to any of the regional players to make them into a national network.”
MetroPCS Said to Become Frontrunner for AT&T-T-Mobile Assets - Bloomberg
