Deutsche Telekom raising its bid to save the T-Mobile-MetroPCS merger?
The deal as currently constructed gives MetroPCS shareholders $4.06 a share in cash and 26% ownership of the remaining company. Duetsche Telekom will own 74% of the company after the merger. The stock has fallen about 17% since the deal was announced, but is up nearly 4% today on the rumors of a higher bid. If a higher bid does come in from Deutsche Telekom, or even from a third party, the stockholder vote will probably be delayed so that holders can examine the new bid.
The only reason to raise the bid at this point, is because Deutsche Telekom believes that it won't have enough votes to have the merger agreed to by MetroPCS holders. The shareholder vote is all that is left before the deal can close as all other regulatory requirements have been met.