Deutsche Telekom has been working to merge its U.S. carrier, T-Mobile, with MetroPCS, and last month received complete regulatory approval. The German company thought the original deal was good, but MetroPCS shareholders disagreed. In an effort to save the merger and finalize it, they approved a better deal today. This new deal will lower the amount of debt transferred to the new company and lower the interest rate on that debt. Lowering the amount of debt transferred means a more valuable equity stake. MetroPCS shareholders are currently being offered about $4 per share in cash and a 26% stake in the combined company. Votes are already being held in advance of a scheduled shareholder meeting Friday and according to an insider, it’s not looking like the deal will go through in its current form.
Source: The Wall Street Journal
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