MetroPCS Merger Opponents Now Like the Deal
Apr 11th 2013 8:51PM
Updated Apr 11th 2013 8:56PM
Both Paulson & Co. and P. Schoenfeld Asset Management, the two major MetroPCS shareholders leading the opposition to the second-tier mobile operator's proposed merger with T-Mobile USA, have today announced their measured approval of the new terms offered by T-Mobile's parent company, Deutsche Telekom.
The revised offer from Deutsche Telekom includes a reduction of $3.8 billion in debt, and a 50-basis point reduction in the interest rate at which the combined MetroPCS/T-Mobile would need to repay that debt.
Paulson, holder of 9.9% of outstanding MetroPCS stock, said that it wants to review the revised proxy statement before finalizing its decision, but does intend to vote for the merger. Schoenfeld also said that, pending a final review of the new terms, it will withdraw its proxy soliciting opposition to the deal, and will not object to the merger.
"While the revised transaction terms do not reflect all the improvements we were seeking, we feel our central goal of making the combined PCS/T-Mobile company more competitive and valuable for all shareholders, including Deutsche Telekom, resulted in obtaining superior value for PCS shareholders and believe that these revised terms are the best alternative for PCS shareholders at this time," Schoenfeld said in a statement.
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