MetroPCS Jumps After DealReporter Renews Buyout Speculation
MetroPCS Communications Inc. (PCS), the Texas-based prepaid wireless carrier, rose the most in six weeks after DealReporter said the company has held talks with suitors such as Sprint Nextel Corp. (S) and Dish Network Corp. (DISH)
MetroPCS advanced 6.2 percent to $11.95 at the close in New York, the biggest daily gain since Aug. 15. The shares have climbed 38 percent this year.
Deutsche Telekom AG (DTE)’s T-Mobile USA business participated in talks with MetroPCS, DealReporter said, citing an unidentified source familiar with the matter. Some of the talks are ongoing, the publication reported.
Jason Armstrong, an analyst at Goldman Sachs Group Inc., said earlier this month that it might make sense for Sprint to buy MetroPCS or its prepaid rival Leap Wireless International Inc. (LEAP) Such a transaction would be easier to complete than Sprint buying T-Mobile, the fourth-largest U.S. mobile-phone service. Sprint ranks third in the market, behind Verizon Wireless and AT&T Inc.
Drew Crowell, a spokesman for Richardson-based MetroPCS, Bob Toevs, a Dish spokesman, and Scott Sloat, with Sprint, wouldn’t comment. Ron Low, a representative for T-Mobile USA, also declined to comment.
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