Deutsche Telekom made its “best and final offer”...
Deutsche Telekom made its “best and final offer” late Wednesday in its bid to merge its T-Mobile USA wireless carrier with MetroPCS. Deutsche Telekom’s new offer would still give MetroPCS shareholders $1.5 billion in cash and 26 percent ownership of…
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the combined carrier, but it does address concerns about debt. Deutsche Telekom is now proposing to transfer $11.2 billion in debt to the combined carrier -- $3.8 billion less than in the original offer -- and has cut the interest rate on the debt by half a percentage point (bit.ly/14eCSCX). MetroPCS said it has moved a full vote on the merger to April 24; it had previously been set to occur Friday. The original merger proposal faced increased opposition in recent weeks, with two major MetroPCS investors saying they would vote against the deal, after several proxy advisory firms found Deutsche Telekom’s original offer did not reflect the true value of MetroPCS’s assets and involved too much debt (CD April 2 p9). Hedge fund Paulson & Co., one of the two MetroPCS shareholders leading opposition to the merger with T-Mobile, said in a statement it “intends to vote for the” revised deal, which it said was an improvement. P. Schoenfeld Asset Management, the other leading opponent of the original deal, said in a statement it’s reviewing the new offer.