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MetroPCS shareholders back new offer from Deutsche Telekom
2013-04-12 09:57:00| Telecompaper Headlines
(Telecompaper) Two of MetroPCS' major shareholders have withdrawn their opposition to the company's proposed merger with T-Mobile USA, after Deutsche Telekom improved the terms of the offer. Paulson & Co, the largest MetroPCS shareholder with a 9.9 percent stake, said that it "appreciates the substantial improvement to the terms", which include a USD 3.8 billion reduction in debt and 50 basis points reduction in the interest rate. Paulson said it will review its proxy statement for the AGM and intends to vote for the merger as restructured. P. Schoenfeld Asset Management (PSAM) also announced that it will withdraw its proxy solicitation campaign against the deal and not object to the proposed merger. PSAM said Deutsche Telekom had listened to the concerns of itself and other shareholders and improved the capital structure of the merger company. Under the new terms of the deal, it calculates pro forma net debt of 3.0 times EBITDA and a ratio of EBITDA minus capital expenditure to interest expense of 1.0 for the merged operators, which "conforms to what PSAM believes is necessary for a stable capital structure".
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Category:Telecommunications