Does anybody actually own sprint and can comment on what happened today? There was a buyout of 74% of the shares. Does that mean Sprint shareholders all got completely bought out, and the new Sprint trading today is like an IPO/new issue? Or did existing Sprint shareholders get converted to the new Sprint shares?
I found a bit more information: "Based on the elections made by Sprint stockholders, each stockholder that elected to receive stock will receive one share of stock in Sprint Corporation, and each stockholder that elected (or was deemed to have elected) to receive cash will receive a combination of $5.647658 in cash and 0.261744048 of a share of stock in Sprint Corporation." So stockholders that elected to receive stock traded a share that was trading at $7.18 for a share that opened today at $6.38. Whereas stockholders that went for the cash option would have gotten $7.29 based on the ex-div, ex-spl price of 6.28. So if we believe in efficient markets, Sprint share should surge at least to $7. Am I missing anything here?
I don't understand why it should run to $7. If you bought shares at the close at $7.18, you would receive $5.64 in cash and 0.26 shares. If you sold those .26 shares on the open you would receive $1.67. 1.67 + 5.64 = $7.31, a profit of $0.13. There seems like there is no arbitrage profit to me, since you don't where the new shares are going to trade.
After years of corporate drama and talks about a merger, Sprint and T-Mobile have finally agreed on a $26 billion deal. The combined company will have 127 million subscribers. It will be called T-Mobile and led by its CEO, John Legere. This entity will pose a threat to AT&T and Verizon. The timing of the merger is impeccable. As 5G becomes the reality, the new company will save a ton of money building out next-gen infrastructure.