Sprint Nextel Corporation (S), DISH Network Corp. (DISH) And How To Ride This Merger Merry-Go-Round

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Another member of the merger merry-go-round

Sprint and Clearwire are not the only companies undergoing consolidation in the telecommunications sector. MetroPCS Communications Inc (NYSE:PCS) is a wireless broadband mobile communications company that offers voice services, data services, custom calling features and advanced handsets.  MetroPCS Communications Inc (NYSE:PCS) shareholders recently approved a merger by T-Mobile, after T-Mobile improved its offer.  Large PCS shareholder John Paulson, who held 38 million shares during Q4 of 2012, disapproved of T-Mobile’s first offer, but then backed off when the better offer was made by T-Mobile; Read more about Paulson’s initial concerns with the merger.MetroPCS Communications Inc (NYSE:PCS) stockholders are going to receive $4.06 per share in the deal.  The deal is expected to close on April 30th, and has already received regulatory approval.

Final thoughts

At this point in time, it is difficult to ascertain how the competing bids for Clearwire and Sprint will play out.  Sprint and Clearwire are trading fairly close to the per share bid offer prices on the table.  Thus, there may not be a lot of further upside for either of those stocks, unless the bids are upped.  Due to the competition between Softbank and Dish, an increased offer is certainly not out of the question.  However, another major source for uncertainty is what the government’s position on these mergers will be.  Softbank may have hurdles to jump through as a foreign company, but it is not a given that Sprint would just accept the higher offer amount from DISH Network Corp. (NASDAQ:DISH).  Investors will have to wait and see how this fascinating story plays out.

Disclosure: none

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