DT stands firm on T-Mobile/MetroPCS deal

DT stands firm on T-Mobile/MetroPCS deal

11 FEB 2013

Deutsche Telekom said it “remains committed” to the proposed merger of T-Mobile USA with MetroPCS, following investor criticism about the terms of the deal.

In a statement, the T-Mobile USA owner said that it will “enforce its rights under the definitive agreement with MetroPCS”.

It continued: “This combination will substantially benefit the shareholders and customers of both companies by creating a new company that will be the leading wireless value carrier with expanded scale, spectrum and financial resources to compete across the entire US market.”

MetroPCS said last week that its board believes the combination with T-Mobile USA “is in the best interests of MetroPCS and all MetroPCS stockholders and continues to recommend that MetroPCS stockholders vote in favour of the proposed combination”.

The comments come after P Schoenfeld Asset Management (PSAM), which owns 7.5 million MetroPCS shares (around 2 per cent of the total), said it intends voting against the transaction because “it would be better for PCS to remain a stand-alone company while examining opportunities to consummate alternative transactions, than to accept the package of cash and securities being offered to PCS stockholders”.

PSAM argued that the combined business “is not appropriately and fairly capitalised”; that the interest rate on Deutsche Telekom’s debt financing is “far above market”; and the exchange ratio is “unfair to PCS stockholders”.

MetroPCS said that its board and advisors “will carefully review and consider the perspectives provided in PSAM’s letter”.


Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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