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Tuesday, January 21, 2014

Loeb's Third Point likes T-Mobile in addition to Dow -letter, (NYSE: TMUS)

Hedge fund manager Daniel Loeb's Third Point took a new position in T-Mobile US Inc late last year, identifying it as one of several companies in his fund that might benefit from a pickup in global mergers and acquisitions. "In addition to T-Mobile's fundamental value proposition, the company is strategically interesting for Sprint and potentially DISH, which has driven shares higher," Loeb wrote in a quarterly letter, which was seen by Reuters.The biggest news in the letter centered on Third Point's new position in Dow Chemical Co. where the fund is urging the company to split its specialty chemicals operation from its petrochemicals business.But Loeb also wrote of investments in addition to T-Mobile and Dow, including ones in Japan's Sony and Softbank Corp. In November, Loeb disclosed a $1 billion bet on Softbank, the parent company of Sprint."More recently, Sprint has surfaced as a source of meaningful upside potential in the context of a rumored merger proposal for T-Mobile," Loeb wrote in the letter.

Shares of TMUS traded higher by 1.05% or $0.34/share to $32.85. In the past year, the shares have traded as low as $16.01 and as high as $34.10. On average, 7089770 shares of TMUS exchange hands on a given day and today's volume is recorded at 3387509.