MetroPCS delays shareholder vote after T-Mobile sweetens acquisition deal

Though initially most analysts thought the acquisition of MetroPCS by T-Mobile and parent company Deutsche Telekom would go off without a hitch, shareholders voting to approve the deal voiced a different opinion. After a vocal outcry from investor groups like Institutional Shareholder Services, T-Mobile is offering to sweeten their initial deal in order to gain the necessary approvals.

As speculation yesterday pointed to, the new and “final” offer reduces the amount of debt being rolled into MetroPCS — a major sticking point for shareholders — by nearly $4 billion. It also expands the waiting period for Deutsche Telekom to sell shares in the newly acquired company from 6 months to 18 months.

Whether or not it’s the deal MetroPCS wanted, the new terms are enough to get the company to delay a vote that was supposed to take place tomorrow, April 12th, until April 24th.

[via Engadget]

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  • Deads

    Good cause its mostly T-Mobile that needs this merger to happen so i can fully understand why the shareholders want a better deal.
    The reason T-Mobile needs this merger so bad is cause they have a crapload of debt thats hurting their profits on a yearly basis.
    And due to this low profit (low considering their size) rolling out 4G in the VS and many other countrys has become an expensive thing for them also when you include the fact that they have to buy new licenses in some countrys.

    18 months til they can sell their shares stil feels kind of short tbh. But i guess its a staged thing where in 18 months they can sell only a certain % and then they have to wait a while until they can sell more.