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Top message: T-mobile is buying Suncom for $2.4B with the assumption of debt by nextel18
Replying to: Re: T-mobile is buying Suncom for $2.4B with the assumption of debt by wombough
Well, what I would have done was to wait to see how Suncom will perform operationally and financially. Now, if the deal goes through, they have to incur those deficits as well as expanding the network to 3G, which costs money. To gain access to a potential 20 million is very key but I think those synergies of $1b is actually too much. Of course, they wonâ€™t have to spend any money in roaming, but they would have to expand its HSPA network there. I would have just done things differently. I am trying to read the past performances of Suncom to tell you some of the aspects but their own capital expenditures arenâ€™t that large. Earlier they paid $113m for 20 licenses the cover over 7.4 million people, but some are in NC, SC, and VA. It looks like in capital expenditures in 9 months in September of 2004 they spent $51m. in 2005 for the 9 months they spent $63 million. they have a collective as of now in debt of $800m so you can just assume a few things. I believe SunCom went bankrupt a few times so obviously that helps them.
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