Better terms to hopefully lessen MetroPCS shareholder disapproval of the deal

T-Mobile USA's parent company Deutsche Telekom has submitted its "best and final offer" to shareholders, sweetening the deal for the MetroPCS reverse takeover. Amidst the growing sentiment among MetroPCS shareholders that they're getting the bad end of the deal, T-Mobile is reducing the amount of debt transferred to the new company as part of the deal. The current terms are good enough for most, and see MetroPCS shareholders receiving $4 per share and a 26-percent stake in the newly combined company. The new deal will also now see a reduced amount of debt transferred to the new company, now at $3.8 billion -- along with a slightly lower interest rate.

Although there is a vocal minority of shareholders disapproving of the current terms, they're still the minority. With T-Mobile previously stating that it felt its initial terms are fair, it's interesting to see it come back with a better offer to help guarantee the deal is accepted. MetroPCS shareholders are currently sending in their votes to approve or disapprove of the deal ahead of a shareholder meeting, which has been pushed back to April 24th because of the new terms. Pending that shareholder approval, all indications point to the deal going through at some time in 2013.

Source: WSJ


Reader comments

T-Mobile gives 'best and final offer' for MetroPCS takeover


Gosh $3.8bln in debt, that sure is a lot!
I hope T-Mobile does well the next 2-3yrs,
gaining customers from the BIG 2, properly marketing
the benefits of no contracts.

I personally want this to go through for the
spectrum! No carrier can have enough spectrum,
even in 2015-2017>>>, I don't want LTE/LTE-A
speeds to suffer.

One of the reasons I did not sign up with T-Mobile a couple of months ago was that they did not seem to have much direction in what way the company was going.

Some things are still up in the air for them, however, with the MetroPCS merger, a lot of good things on in store for Tmob and their customers.

Hopefully, when my current contract is up, Tmob will have A level coverage, continue to offer unlimited data, and have LTE everywhere. I will certainly look into Tmob then, it just seemed like too much of a gamble going with them a couple of months ago.

I don't want to sound like an internet troll here, but what kind of direction do you want them to go in? They're a cellular service provider.

What kind of direction is a business supposed to go in? You must think cellular services have no competition, no expenditures, revenues, marketing effects, no management, or anything else that a for-profit business has. Do they not have stock, or shareholders? Why would this be hard to understand?