“MetroPCS Communications Inc. has emerged as the frontrunner to buy assets from AT&T Inc. and T- Mobile USA Inc. as those companies seek to win government approval for their $39 billion merger, according to people familiar with the matter,” Serena Saitto, Sara Forden, Olga Kharif and Jeffrey McCracken report for Bloomberg.
“Though the size of the deal isn’t yet definite, it would likely include subscribers and wireless spectrum, said the people, who couldn’t be identified because the talks aren’t yet public,” the quartet reports. “The deal’s value is likely to be less than $4 billion, said one person.”
“AT&T approached smaller rivals including Dallas-based MetroPCS, Leap Wireless International Inc. (LEAP) and Leap Wireless Corp. (DISH), people familiar with the matter said last month. Though Leap is still in talks with AT&T, MetroPCS, with more than $2 billion in cash and short-term investments, has a stronger balance sheet, the people said,” the quartet reports. “As part of the deal, Deutsche Telekom is prepared to help MetroPCS with financing, said one of the people.”
The quartet reports, “AT&T is seeking ways to salvage its agreement to buy T- Mobile USA from Bonn-based Deutsche Telekom AG (DTE) after the U.S. Justice Department sued on Aug. 31 to stop the deal. The talks with MetroPCS may not lead to a deal, and the Justice Department may also deem the remedies insufficient, the people said.”
Read more in the full article here.
[Attribution: BGR. Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]