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3 Top Buyout Targets for 2014

These stocks could be big winners in an accelerating M&A environment

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Buyout Target: T-Mobile U.S. (TMUS)

buyout-TMUS-stock52-Week Performance: +67%
Market Cap: $25 billion

It seems like anyone not named AT&T (T) or Verizon (VZ) is a buyout candidate in the telecom business, and that’s especially true for T-Mobile (TMUS).

Market speculation has not one, but two potential suiters looking to bulk up with T-Mobile to make a better go at AT&T and Verizon, who dominate the wireless market.

Sprint (S) — which just went through its own buyout when Japan’s Softbank (SFTBY) took majority control — is seen as the most likely company to buyout T-Mobile. Combing the No. 3 and No. 4 wireless carriers makes sense on paper, but it’s not clear how tying two bricks together will make them float.

A buyout bid from Dish Network (DISH) could also be in the works. Dish has made no secret of its desire to buyout a wireless carrier. Indeed, it was set to buyout Sprint before Softbank swooped in. Either way, it’s clear that T-Mobile is not long for this market under its current ownership structure.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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