Metro, Leap could try to go it alone

MetroPCS and Leap Wireless merger. Last month we heard even more, as both companies hired strategic advisors. Yet instead of hearing news of talks between the companies, we’ve heard nothing. It turns out there might be a reason for that. Tim Horan, an analyst at Oppenheimer & Co., predicts that any potential merger could be a year or more off. Instead, they could pursue independent paths, falling back on merger talks if things don’t work out.

“The market is slowly coming to the realization that a merger is not imminent,” wrote Horan, who said he expects the shares to perform in line with the market over the next year. The industry is “still hurting from effects of increased competition, though we believe the industry is nearing the end of this price-war cycle, which would take some pressure off Leap and PCS.”

He further presents the idea that Metro appears to have no competition in a possible acquisition. We’ve heard names of nearly every wireless company mentioned as a potential suitor, but nothing seems to be in the cards. Things could change within a year, of course. For all we know, we could get news of a merger next week. It’s not probable, but it’s possible. I think, though, that if we’re not going to get movement soon that we could do without news on the matter for a while.]]>