When the German Council on Foreign Relations posted a media
release yesterday announcing a a merger between
Deutsche Telekom (
, MetroPCS stock shares rose as high as 19.18%.
The announcement was released on DGAP.de (which stands for
Deutsche Gesellschaft f�r Ausw�rtige
Politik e.V.), Germany's ad hoc disclosure institution that
provides news information concerning equity, stocks, share prices
and the economy. It confirmed various media reporting the merger,
despite the slight chance that the agreement may still fall
apart, as seen last year when AT&T dropped plans for its $39
billion buyout of T-Mobile.
A media conference call is scheduled today between Deutsche
Telekom, T-Mobile and MetroPCS, at 4:30 p.m. (Central
Europe/10:30 a.m. Eastern/7:30 a.m. Pacific), according to a
press release T-Mobile released this morning.
As the parent company of the mobile-network operator, T-Mobile
USA, Deutsche Telekom is said to acquire control of the company
if the merger agreement follows through, consolidating MetroPCS
and T-Mobile services that will place its position at a better
stance to compete against mobile industry leaders such as
AT&T, Verizon Wireless and Sprint Nextel Corp.
Deutsche Telekom is one of the largest integrated
telecommunications companies in the world, providing products and
services in mobile communications, the Internet, consumer-based
Internet Protocol television, and business-and-corporate-based
ICT Solutions. The company has about 130 million mobile
customers, 33 million fixed-network lines and more than 17
million broadband lines, according to its website.
A merger with MetroPCS falls timely with T-Mobile's current
announcement of entering definitive agreements with Crown Castle
International Corp., the largest provider of wireless
infrastructure in the United States. The agreement gave Crown
Castle rights to 7,200 T-Mobile towers for $2.4 billion at
closing, a move that will provide significant growth in the
demand for wireless data services, particularly in the most
densely populated areas in the U.S.
MetroPCS is known for its prepaid, zero-contract services, and
its lower rates for unlimited, 4G data. It is currently selling
at $12.86 per share, with a GuruFocus Financial Strength ratio of
4 out of 10, and a Profitability & Growth Rank of 7 out of
10. Additionally, the company has a P/E ratio of 12.8, a P/S
ratio of .9, and is currently held by two Gurus: Gotham Capital's
, who currently owns more than 520,000 shares, and Invesco
's Wilbur Ross, who owns 100,000 shares.About GuruFocus:
GuruFocus.com tracks the stocks picks and portfolio holdings of
the world's best investors. This value investing site offers
stock screeners and valuation tools. And publishes daily articles
tracking the latest moves of the world's best investors.
GuruFocus also provides promising stock ideas in 3 monthly
newsletters sent to