180 degree change for largest MetroPCS stock holder; hedge fund now supports deal after revision
While the deal didn't change what MetroPCS stockholders will get in the merger, $4.06 a share and a 26% stake in the combined company, the lower amount of debt and lower interest rate means that the surviving company could be flexible enough financially to buy more spectrum. In addition, Deutsche Telekom, which ends up with 74% of the company in the transaction, now promises not to sell any of its shares for 18 months from the deal's closing, up from only 6 months in the original merger deal. That removes some pressure on the stock for the first year and might have been the part of the revision that made hedge fund Paulson and Co. do a reversal to say it now supports the merger and will vote for it. The fund is the largest MetroPCS stockholder and its decisions are watched by other big holders of the stock.
The new date for the stockholder meeting is April 24th. It is the last hurdle required before the deal can close.
1. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)
this will be good for t-mobile, the only thing holding me back is coverage and picking up metro pcs should help.
2. k1ng617 (Posts: 264; Member since: 13 Oct 2009)
Agreed. I like this deal. Hope I'm not wrong!
5. alouden (Posts: 262; Member since: 18 Oct 2011)
I'm planning to pull the trigger. I too was waiting on this deal being finalized. Now all T mobile has to do is announce the GS3 with LTE.
3. Topcat488 (Posts: 1184; Member since: 29 Sep 2012)
After living in Germany for the past 25yrs, i can only say... Don't TRUST them at face value, and walk around the offer/deal a couple of times, to make sure you want it! Remember what Mercedes did to Chrysler... Why do you think that Germany is prospering at a time of economic recession, when the rest of Europe is not??? Here some workers are paid 1 euro an hour. That's about $1.30 an hour.
4. archangel9 (Posts: 231; Member since: 07 Feb 2010)
This is a win win for everybody and it's less pressure on the new company and more flexibility which means acquiring more spectrum