It was leading proxy advisory firm ISS and its decision to recommend that MetroPCS vote against the merger with T-Mobile
, that ended up changing the terms of the acquisition
. Last week the amount of debt that the surviving company will be saddled with was cut by $3.8 billion. The resulting $11.8 billion in debt will carry an interest rate 50 points less than rate on the original terms. And perhaps most importantly, Deutsche Telekom now will not be able to sell even one share of its 74% ownership of the surviving company until 18 months
after the deal closes. That is an extra 12 months from the original lock up provision and gives shareholders some protection.
Besides ISS, another proxy advisory firm, Glass Lewis, has also recommended that MetroPCS holders vote for the merger. Originally, the company also recommended that stockholders vote against the transaction. The vote will take place on April 24th
and only the latest dated ballot counts. This means that if you originally followed the recommendations of one of these two advisory firms and now want to vote in favor of the merger, you should sign, date and mail in the latest green proxy card. You can also vote by phone or on the internet.