By Nathalie Tadena
MetroPCS Communications Inc. (PCS) shareholders have approved
the company's merger with Deutsche Telekom AG's (DTE.XE, DTEGY)
T-Mobile USA unit, after terms of the deal were improved.
The deal is expected to close May 1.
T-Mobile agreed last year to merge with MetroPCS, which would
create a publicly traded company of which Deutsche Telekom would
own 74%. Under the deal, MetroPCS shareholders would receive about
$4 a share in cash and the remaining 26% in the newly merged
company.
Earlier this month, Deutsche Telekom sweetened its bid, after
MetroPCS faced opposition from shareholders unhappy with the deal's
debt component in particular.
Under the amended terms, MetroPCS will reduce the combined
company debt issued to Deutsche Telekom by $3.8 billion to $11.2
billion, a move the carrier said creates additional financial
flexibility and significantly increases the combined company's
equity value. Deutsche Telekom also agreed to lower the interest
rate on the T-Mobile debt by half a percentage point.
MetroPCS shareholders P. Schoenfeld Asset Management LP and
Paulson & Co. as well as proxy-advisory firms Institutional
Shareholder Services and Glass Lewis & Co. dropped their
opposition to the deal in light of the new terms.
MetroPCS shares were off 4 cents at $11.65 in recent
trading.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
