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rffrydr Moderator


Joined: 30 Oct 2005 Posts: 6587 Location: Sunny California
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HenryTo Site Admin


Joined: 06 Aug 2004 Posts: 7177 Location: Houston, Texas & Los Angeles, California
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Posted: Sun May 04, 2008 9:43 pm Post subject: |
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Deutsche Telekom rumored to be making a bid for Sprint:
http://online.wsj.com/article/SB120994107407665981.html?mod=yahoo_hs&ru=yahoo
| Quote: | Deutsche Telekom's deliberations are at a preliminary stage and management may very well turn away, these people cautioned. If a bid is launched for Sprint Nextel, which has a stock-market capitalization of $22 billion and is the No. 3 player in the U.S. wireless market, it could still be weeks, or even months, away, they added.
The potential bid is being considered as the former German monopoly scouts for acquisitions in countries outside the German market, where it has seen its revenue shrink in recent years amid rising competition and falling prices. Last year, it booked just over 50% of its revenue outside Germany for the first time.
T-Mobile is a distant No. 4 in the U.S. wireless market, with 28.7 million customers at the end of December. It invested heavily last year to acquire new wireless spectrum and is eager to expand. By acquiring Sprint Nextel, it could roughly triple its client base in the U.S. and surpass leaders AT&T Inc. and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC.
Bonn-based Deutsche Telekom increasingly is focusing on its international wireless businesses as its domestic fixed-line services slump. Its wireless businesses generated more than half of the company's €62.5 billion ($96.3 billion) in revenue and €19.3 billion in operating profit last year.
The U.S. has been the biggest growth engine. T-Mobile USA added 3.6 million customers last year, boosting its revenue to $19.3 billion from $17.1 billion in 2006. In February, Deutsche Telekom completed its $1.6 billion acquisition of U.S. carrier SunCom Wireless Holdings Inc., which had 1.1 million customers.
The German company has a stock-market capitalization of $79 billion and money to spend after whittling down its debts in recent years.
Deutsche Telekom has looked more closely at Sprint Nextel since the U.S. company's share price has fallen below $10, far below its 52-week high of $23.42. The German company also may opt to strike while the euro is near record highs against the dollar, according to people familiar with the matter. |
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HenryTo Site Admin


Joined: 06 Aug 2004 Posts: 7177 Location: Houston, Texas & Los Angeles, California
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Posted: Tue Jul 15, 2008 11:59 pm Post subject: |
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Now, SK Telecom from South Korea is rumored to be making a bid for Sprint, although it is unlikely given that SK is half the size of sprint (by market cap) and given the potential size of the deal:
http://www.technologyreview.com/Wire/21090/?nlid=1211 |
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