Ina Fried

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Deutsche Telekom Sweetens T-Mobile’s Bid for MetroPCS

tmobile_metropcsBowing to concern from some MetroPCS shareholders, Deutsche Telekom on Wednesday improved T-Mobile’s bid for MetroPCS, reducing the amount of debt it would hold after the deal.

In what it dubbed its “best and final offer” for MetroPCS, Deutsche Telekom reduced the loans that it would be owed by $3.8 billion to $11.2 billion, and also said it would lower the interest rate on the debt.

“This lower rate reflects the new capital structure of the combined company, the improved capital markets environment in recent months, and the interest rate level of MetroPCS newly issued USD 3.5 billion of bonds priced in March,” Deutsche Telekom said.

Other terms of the deal would remain the same, Deutsche Telekom said, allowing a scheduled vote by MetroPCS shareholders to proceed as scheduled. Regulators in the U.S. have already approved the deal.

Under the deal, MetroPCS shareholders would get $1.5 billion in cash and a 26 percent stake in the merged company. Deutsche Telekom would also control the board of the combined company.

Certain shareholders, as well as a key proxy advisory firm, had been urging a vote against the deal unless better terms were offered.


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