Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: atta9508 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27496  
Subject: Re: Company Acquisition Date: 10/3/2012 1:14 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Not sure if I am looking at this correctly, but here goes. Metro PCS will pay existing investors about 1.5B, so about $4/share. MetroPCS will then own 26% of the merged company. Here is how I estimate the numbers.

If T-Mobile (DT) has a market cap of 12.6 ($/share) X 4.3B Shares = $54B.

MetroPCS will do a reverse split, so number of shares is cut in half. I read in the annual report that there are 1B shares authorized and about 360M outstanding. So does this mean there are about 640M shares currently owned. If they do a reverse split does this mean that this number of shares drops to 320M? If so would I then take 26% of T-Mobiles Market Cap of 54B = 14B to determine how much the investors will receive. Then to get what that means on a $/share, would I take the 14B and divide by the number of shares owned (320M) after the split.

$14B / 320M Shares = $4/Share
$1.5B / 360 = about 4$/share

So are they saying the stock is worth about 8/share!?

Thanks,
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement