T-Mobile, MetroPCS Communications Inc (NYSE:PCS) combo heads for NYSE – DTE, VZ
Northern, WI 05/02/2013 (gdpwatch) – Post its merger with MetroPCS Communications Inc (NYSE:PCS) (Closed: $11.84, Up by 51.97%), its far smaller rival , the fourth largest wireless company in the United States, T-Mobile USA has debuted on the New York Stock Exchange. The company stock will be traded via the TMUS ticker symbol and the combined and much larger company will continue using its T-Mobile USA name. It will be based in Bellevue, Washington where the latter is currently headquartered. Via this deal, T-Mobile’s parent, Deutsche Telekom AG (FRA:DTE) (Current: 8.90 EUR, Down by 1.18%) gets a 74 percent stake in the combined company. Metro PCS shareholders will get $4.06 per share in cash or $1.5 billion as well as the remainder of the stake in the company.
The basics of a network
With a capital input and the cash payment taken into account, Deutsche Telekom will be providing a loan as well. At the outset, the stock will be traded in the $15- $16 per share range. A prominent analyst said that stocks however, tend to be a little volatile in such conditions. Analysts have estimated the target price of the stock to be $16. T-mobile has over 40 million customers and now with Metro PCS under its wing, the airwave licenses skies have opened-up even further for it. These are essential for providing faster services to beat larger rivals such as Verizon Communications Inc (NYSE:VZ) (Closed: $52.40, down by 2.80%), AT&T and Sprint.
This way or that
T-Mobile has been lagging in the structuring if speedier networks and also in offering the Apple iPhone. The device was finally launched by it and new and attractive contract plans have been introduced as well. Only time will tell whether the new marketing strategy that has been adopted by John Legere the Chief Executive Officer will bear fruit or not.