Investors typically lose when their stocks acquire other stocks. On the other hand, target stocks tend to perform well, at least until their prices rise to substantially the entire deal premium. Essentially, once the cat is out of the bag, most of the money to be made by investors in an M&A deal comes off the table.
This is bad news for investors interested in wireless and telecom stocks. Are there any stocks that are cheap enough to warrant getting involved in an industry plagued by takeovers?
Sprint on a Shopping Spree
Dan Hesse, the Chief Executive Officer of Sprint Nextel (S) is looking to acquire more wireless spectrum after seeing Verizon Wireless (VZ) and AT&T (T) accumulate the mobile-phone industry's most valuable and costly resource. The company is expected to add new capacity to support its data service from buckling in the future as various
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