(Newswire.net — April 18, 2013) Sacramento,CA — The German telecommunications company, Deutsche Telekom, is looking to merge its T-Mobile USA unit with MetroPCS. This would be a merger of the fourth and fifth largest U.S. carriers and would put them in a better position to compete with Verizon, AT&T , and Sprint.
MetroPCS Communications Inc. (PCS) said its board has unanimously approved the new terms of its proposed merger agreement with Deutsche Telekom AG’s (DTEGY, DTE.XE) T-Mobile USA Inc. A shareholder vote on the proposed merger is scheduled for April 24.
The revised deal will not give Metro’s owners any additional stock or a better price per share, however the tweaks they made will indeed make the equity they do receive more valuable. DT offered to take off $3.8 billion off of the debt that the combined company would carry,they would drop the interest rate by half a percentage point,and agree to a longer lockup period of 18 months which DT could not sell its shares.
The revisions come after a back and forth disagreement between MetroPCS and shareholders such as
Paulson & Co. and P. Schoenfeld Asset Management LP, which challenged the wireless carrier on several issues tied to the deal. Last week, the two hedge funds reversed their opposition to the deal after the changes were announced.
T-Mobile and Metro PCS offer some of the best priced cellular plans in the U.S.
T-Mobile is also partnered up with Solavei which offers their customers unlimited talk, text, and data at $49/month with a opportunity to reduce that rate to $0 simply by referring other customers. T-Mobile has been making some bold moves to increase their competitiveness and value in the U.S. This merger will certainly help that progress.
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