Printed from http://www.electronista.com

MetroPCS shareholders approve merger with T-Mobile USA

updated 11:05 am EDT, Wed April 24, 2013

Shareholder vote succeeds after Deutsche Telekom sweetens deal

Shareholders of MetroPCS have reportedly approved the merger of the carrier with the fourth-largest mobile phone network, the Deutsche Telekom-owned T-Mobile USA. A shareholder vote for the proposal is the last hurdle for the merger to take place, after both the FCC and Department of Justice gave their approval last month with no negative commentary.

Reports from Bloomberg and the Reuters news agency confirm the vote results, which provides Deutsche Telekom a 74-percent stake in the merged company and a $1.5 billion payment to MetroPCS shareholders, after the original proposal received some changes in order to win over its critics, including largest MetroPCS shareholder Paulson & Co.

The revised deal saw Deutsche Telekom lower the amount of debt owed by the new, merged company from $15 billion to $11.2 billion, as well as lowering the interest rate of the loan by half a percent. The lock-up period, the time that Deutsche Telekom cannot publicly sell shares from the company, has been extended from six months to 18 months.

The merger will provide T-Mobile the spectrum and the means to expand its new LTE network across the United States, in order to compete with Verizon and AT&T, as well as bringing over 9 million MetroPCS customers to the T-Mobile GSM network.



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

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News