Feeds

T-Mobile US to raise nearly $2bn in share sale to splurge on spectrum

Mobile firm looks ahead to future government auctions

Internet Security Threat Report 2014

T-Mobile US has announced it will be selling off a bunch of new stocks to bring in nearly $2bn to spend on spectrum.

America's fourth largest mobile service provider said it would offer 66.15m common shares and use the proceeds for a whole bunch of vague corporate stuff and for "opportunistically acquiring additional spectrum".

T-Mobile's owner, Deutsche Telekom, was quick to confirm on Twitter that it was "very much committed" to the company. It said it wasn't selling its own shares, but its 74 per cent stake in the firm would be diluted down to 67 per cent by the public offering.

Investors appear to be uneasy about the move, with shares in T-Mobile dipping by three per cent in after-market trading after it announced the sale. If shares stay around the closing price of $26.97, the company stands to make $1.96bn from the new offering.

The next government spectrum auction is expected in January next year, when the spectrum assets of bankrupt telco LightSquared will be sold off. After that, an auction of spectrum licences currently owned by broadcasters is due some time next year or potentially in 2015.

Satellite TV company Dish Network is the only firm that has publicly said it's interested in scooping up LightSquared's spectrum, but mobile firms like T-Mobile, Sprint, AT&T and Verizon may still get involved in the auction. ®

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.