Thursday, April 11, 2013

Deutsche Telekom Raises Offer for MetroPCS

Deutsche Telekom AG (XETRA: DTE) announced a "best and final offer" to acquire MetroPCS and merge it with its subsidiary, T-Mobile USA.

Under the terms of the current agreement between MetroPCS and Deutsche Telekom, T-Mobile USA would be contributed to the combined company with shareholder loans totaling US$15 billion. In its improved offer, Deutsche Telekom will reduce these shareholder loans by US$3.8 billion to US$11.2 billion, significantly increasing the equity value of the combined company.


Deutsche Telekom will also reduce the interest rate on the US$11.2 billion of shareholder loans by 50 basis points. This lower rate reflects the new capital structure of the combined company, the improved capital markets environment in recent months, and the interest rate level of MetroPCS newly issued USD 3.5 billion of bonds priced in March.

The lock-up period during which Deutsche Telekom is prohibited from publicly selling shares in the combined company will be extended to 18 months (previously 6 months).

The company does not believe any further regulatory review is necessary for its sweetened offer.

http://www.telekom.com/media/company/183898

0 comments:

Post a Comment

See also