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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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik