updated 11:05 am EDT, Wed April 24, 2013
Shareholder vote succeeds after Deutsche Telekom sweetens deal
Shareholders of MetroPCS have reportedly approved the merger of the carrier with the fourth-largest mobile phone network, the Deutsche Telekom-owned T-Mobile USA. A shareholder vote for the proposal is the last hurdle for the merger to take place, after both the FCC and Department of Justice gave their approval last month with no negative commentary.
Reports from Bloomberg and the Reuters news agency confirm the vote results, which provides Deutsche Telekom a 74-percent stake in the merged company and a $1.5 billion payment to MetroPCS shareholders, after the original proposal received some changes in order to win over its critics, including largest MetroPCS shareholder Paulson & Co.
The revised deal saw Deutsche Telekom lower the amount of debt owed by the new, merged company from $15 billion to $11.2 billion, as well as lowering the interest rate of the loan by half a percent. The lock-up period, the time that Deutsche Telekom cannot publicly sell shares from the company, has been extended from six months to 18 months.
The merger will provide T-Mobile the spectrum and the means to expand its new LTE network across the United States, in order to compete with Verizon and AT&T, as well as bringing over 9 million MetroPCS customers to the T-Mobile GSM network.