Two hedge funds opposed to the merger of T-Mobile USA and MetroPCS have changed their minds following Deutsche Telekom improving the terms of the deal. The merger now looks likely to go ahead.

Paulson & Co and PSAM, which are the two largest shareholders in MetroPCS, have accepted the revised terms offered by Deutsche Telekom.

The new deal involves reducing the future debt burden on the merged entity and cutting the amount of interest payable on that debt.

The combined T-Mobile USA/MetroPCS will carry $3.8 billion less debt than previously proposed, with a 50 basis-point cut in the interest payable on the debt.

Deutsche Telekom has also expanded the period it is prohibited from publicly selling shares in the company from 12 months to 18 months after the deal closes.