Printed from http://www.electronista.com

Deutsche Telekom improves T-Mobile, MetroPCS merger terms

updated 07:09 am EDT, Thu April 11, 2013

Change in proposal forces delay in MetroPCS shareholder vote

Deutsche Telekom has updated its proposal to merge T-Mobile USA and MetroPCS with more favorable financial terms, in an effort to get shareholders to vote for the deal. The changes to the proposal, which has been deemed its "best and final offer," has forced MetroPCS to delay the final shareholder vote until April 24th.

The new proposal sees Deutsche Telekom reducing the debt owed by the merged company by $3.8 billion to $11.2 billion, and to lower the interest rate on the loan by half a percent, writes Bloomberg. The lock-up period, a time when Deutsche Telekom cannot publicly sell shares from the new entity, has been extended from six months to 18 months. Other details, such as MetroPCS owning only 26 percent of the new company, remain static.

The changes could help win over critics of the deal, including Institutional Shareholder Services Inc. and Glass, Lewis & Co., that advised other shareholders to vote against the merger. Some critics have already welcomed the move by Deutsche Telekom, and will be reviewing the new terms ahead of the rescheduled vote.

The proposed merger of the two carriers has already received scrutiny from the FCC and the Department of Justice, passing both with no negative commentary. The shareholder vote remains the last effective barrier to the merger.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Tylt Energi 2K Travel Charger

Backup batteries and device chargers are objects that many users take for granted. They often only one-dimensional in functionality, r ...

ActvContent Sync Smartband

Smartbands of all sorts are hitting the market. Some build on the buzz around fitness trackers, while others offer simpler features fo ...

RocketStor 6324L Thunderbolt 2 eSATA bridge

Like it or not, the shift to Thunderbolt is underway. The connection is extremely flexible, allowing for video and data to co-habitate ...

Sponsor

toggle

Most Commented

 
toggle

Popular News