Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Sprint had previously made an offer to buy the company in February, and Sprint's board had been reportedly meeting in order to consider a counterbid in light of the announced merger with T-Mobile. Deutsche Telekom, T-Mobile's parent company, feels good about its offer but said it would cross any possible counterbid bridge when it comes to it.
Now what: Sprint CEO Dan Hesse has been predicting industry consolidation recently, and shares had fallen when T-Mobile and MetroPCS announced their love to the world, since that meant Sprint wasn't participating. Sprint is waiting for some critical details that will be included in regulatory filings on the deal's structure before proceeding with any possible offer. That might take a month or two to be filed, but then Sprint would likely have upwards of three months to step forward before investors vote on the T-Mobile offer.
Interested in more info on MetroPCS? Add it to your watchlist by clicking here.
Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
T-Mobile's John Legere Comes Out Swinging in 2018
The outspoken CEO came out with a bold prediction to start the new year.
Why T-Mobile US Stock Rose Just 10% in 2017
The red-hot telecom stock cooled down quickly when a rumored Sprint merger fell apart.
T-Mobile Didn't Waste a Second Buying Back Its Shares
The company just authorized a buyback last month, and it's already gone through one-third of it.