Our final drama-filled deal to watch comes from MetroPCS (PCS), the mid-cap mobile phone carrier that specializes in prepaid plans in major metropolitan areas across the U.S. In October, T-Mobile announced a merger deal that would combine the Deutche Telecom subsidiary and PCS into a single business -- not long after the failed merger attempt between T-Mobile and AT&T (T) fell through.
MetroPCS spent the last several years in growth mode, buoyed by consumers' resistance to high-cost post-paid plans. For more than a few reasons, PCS offered a very appealing acquisition target to larger carriers (in fact, PCS was a position that I recommended to my firm's clients as a buy last summer for those very reasons -- we sold out in the mid $11 range a month before the merger, though). In the case of T-Mobile, that attractiveness of MetroPCS could be the deal's undoing.PCS' biggest shareholders have been balking at the deal, specifically the 74% control of the combined firm that Deutsche Telecom gets after the deal closes. The relatively limited arena of potential suitors does pose a problem, but I think that more value could certainly get unlocked from this deal in 2013. To see these M&A plays in action, check out the M&A portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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