Sprint Nextel Abandons Takeover Bid for MetroPCS
Published on: 27th Feb 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Sprint Nextel is reported to have walked away from an USD8 billion takeover bid for rival US network MetroPCS Communications.
Citing two people familiar with the matter, Bloomberg News reported that the company is looking for aquisitions as it seeks to regain competitiveness with the two dominant operators, AT&T and Verizon Wireless.
The transaction would have represented a 30 percent premium over the share price, CNBC reported earlier.
MetroPCS remains a potential target, although the only viable buyer would be T-Mobile USA as regulators would be bound to block a deal with the larger networks.
There have been repeated on-off rumours over the past couple of years that MetroPCS and the other mid-sized network, Leap Wireless could seek a merger to be better placed to compete with the big-four networks.
On the web: Bloomberg News