MetroPCS urges shareholders to approve T-Mobile deal after no other bids emerge

26 Mar 2013

US mobile operator MetroPCS has reiterated its call to shareholders to approve its merger with Deutsche Telekom’s (DT’s) T-Mobile USA unit, arguing that no other company has actually lodged a counter-bid for the company. Fierce Wireless quotes a letter sent to shareholders as saying: ‘No other bidders have emerged in the five months since the proposed combination was announced. The proposed combination is the best alternative for MetroPCS to maximise stockholder value’. Shareholders are scheduled to vote on the transaction at a meeting on 12 April.

As previously reported by TeleGeography’s CommsUpdate, the Federal Communications Commission (FCC) and the Department of Justice (DoJ) both approved the transaction earlier this month. The deal, which was agreed in October 2012, will be structured as a recapitalisation, in which MetroPCS will declare a one-for-two reverse stock split, make a cash payment of USD1.5 billion to its shareholders, and acquire all of T-Mobile’s capital stock by issuing to DT 74% of MetroPCS’ common stock on a pro forma basis.

United States, Metro by T-Mobile (formerly MetroPCS), T-Mobile US