Sprint rumored to be considering counter offer for MetroPCSAlex Wagner - Deputy Managing Editor, News Desk
Yesterday Deutsche Telekom and MetroPCS announced that they had agreed to a deal that'd merge MetroPCS and T-Mobile here in the U.S. MetroPCS had been the subject of merger rumors several times before, with one report claiming that Sprint very nearly purchased Metro before the Now Network's board killed the deal. According to a new rumor, Sprint may be planning another go at MetroPCS, even though the carrier has already announced the T-Mobile merger. Three sources speaking to Bloomberg claim that Sprint is currently evaluating whether or not it wants to make a counter offer for MetroPCS. The talks are said to be in the early stages, and Sprint is reportedly talking with advisers and breaking down numbers to determine if such an offer is doable.
While it's not yet known whether or not Sprint will actually enter into talks with MetroPCS about a counter offer, it's said that Deutsche Telekom is ready for such a move and could consider sweetening its deal if it needs to. If MetroPCS were to back out of its agreement with Deutsche Telekom, it would owe a $150 million breakup fee. T-Mobile's breakup fee is set at $250 million. Considering that DT and MetroPCS have already agreed to a deal and even have a plan for the combined T-Mobile/MetroPCS laid out, it'd be kind of strange to see Sprint submit a bid for Metro. With Sprint's previous near-purchase of the carrier, though, it's possible that Hesse and Co. may feel the need to make one last-ditch effort to acquire MetroPCS before it's combined with T-Mobile. Stay tuned.