Analysts expect MetroPCS and Leap Wireless merger talks to resume...
Analysts expect MetroPCS and Leap Wireless merger talks to resume after an FCC “anti-collusion” date expired last week. A deal emerging by year-end is highly possible, analysts said in interviews. The FCC “anti-collusion” rules were in place during the…
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700 MHz auction and prevented auction bidders from making deals. A Leap Wireless and MetroPCS discussion “will begin shortly” since those anti- collusion rules are no longer in effect, said Stanford Group analyst Michael Nelson, adding he suspected discussions already had begun. “I could see the deal happening by the end of this year,” he said. He predicted “a several-billion- dollar-synergy.” If there is a deal, it will benefit both companies and “the new joint venture will become a national service provider in the low-income market,” Nelson said. “A deal is going to happen, and the only thing is when,” because “all ingredients are there,” said William Ho from Current Analysis. He said he'd expected discussion to begin before the spectrum auction. The biggest issue is the valuation, as Leap turned down an unsolicited bid of $5.3 billion from MetroPCS last summer, said Ho. In response, Leap Wireless stuck to its original statement. “We think there could be merit,” said a Leap Wireless spokesman on the possible combination. MetroPCS officials didn’t immediately return messages to comment.