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T-Mobile to acquire SunCom Wireless to expand in the US, PuertoRico and US Virgin Islands

by: admin Monday, September 17th, 2007

Rating: Sunny Communications

T-Mobile USA, Inc. and SunCom Wireless Holdings, Inc. (NYSE: TPC)
announced today that they have entered into a definitive merger agreement
for the acquisition by T-Mobile USA of all of the outstanding shares of
common stock of SunCom, for an aggregate of approximately $ 2.4 billion
in cash and assumed debt. This includes cash payment of approximately
$ 1.6 billion and $ 0.8 billion net debt. T-Mobile USA is a wholly owned
subsidiary of Deutsche Telekom AG (NYSE: DT).

From the press release:
“With the acquisition of SunCom, we will continue to implement our strategy
to ‘grow abroad with mobile’, which is part of our overall group strategy,”
said René Obermann, chairman of the Board of Management of Deutsche
Telekom. “At the same time we can realize significant synergies on the cost
side and improve our market presence. As a result, this acquisition will fit
very well with our strategy to grow abroad with mobile primarily within our
current footprint within the context of market consolidation.”

Robert Dotson, president and chief executive officer of T-Mobile USA, said,
“The strategic fit of the SunCom operations will make this a near-perfect
acquisition. It will round out our domestic footprint, allowing us to serve 98 of
the top 100 markets, and will significantly benefit our financial position by
reducing roaming expense. Furthermore, it will add a talented group of
employees that will enable us to serve more than one million new SunCom
customers with industry-leading national products and services available
under the T-Mobile brand.”

What we think?
Excellent move. T-Mobile USA is fuelling the business and T-Mobile is making the most of it.