Merger Rumors Regaining Momentum (PCS, ILMN, S, LEAP)

Tuesday has two merger rumors out from reports today and the shares are surging on the news. We are seeing MetroPCS Communications Inc. (NYSE: PCS) and Illumina Inc. (NASDAQ: ILMN) on the run so far today.

MetroPCS Communications Inc. (NYSE: PCS) is now more than 18% higher to $13.59 after a circuit-breaker was triggered. A report from Bloomberg came out that Deutsche Bank's T-Mobile is close to acquiring the prepaid and no-contract cellular carrier. MetroPCS is currently worth about $4.6 billion for its market capitalization rate. As a reminder, this is a cause-and-effect possible deal. Sprint Nextel Corp. (NYSE: S) had tried to do a deal but Dan Hesse was blocked. Shares of rival Leap Wireless International Inc. (NASDAQ: LEAP) are also up 13% at $7.93. It is worth almost $640 million in market capitalization.

Illumina Inc. (NASDAQ: ILMN) is trading higher after a report from the UK Times. It said Roche's walk away attitude may no longer be the case as it thinks that Roche may make an offer as high as $60 per share, rather than the $51 previously offered. Illumina shares are trading up 7% at $52.46 and its market value is $6.3 billion. As a reminder, Roche walked away from a deal for not wanting to raise its price earlier this year.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Active Trader, Mergers & Acquisitions, Mergers and Buy Outs, Rumors Tagged: ILMN, LEAP, PCS, S