Two weeks after a top advisory firm recommended that MetroPCS shareholders vote against the merger with T-Mobile, Deutsche Telekom — T-Mobile’s parent company — has beefed up the offer.
Deutsche Telekom has reduced the amount of debt MetroPCS would carry from $15 billion to $11.2 billion and also lowered the interest rate on the debt, calling it its “best and final offer.” In response, MetroPCS has delayed its vote — which was supposed to take place Friday — to April 24.
It has been more than five months since T-Mobile announced its intentions to merge with MetroPCS. T-Mobile plans to issue a $1.5 billion cash payment as part of the deal, and give MetroPCS shareholders a 26 percent ownership in the new entity.
Earlier this month, the Federal Communications Commission approved the merger between T-Mobile and MetroPCS, and the board sent a letter to shareholders urging them to do so as well.
If approved, the transaction would combine T-Mobile with MetroPCS, which directly employs 3,700 people to service about 9.3 million customers. T-Mobile employs about 36,000 in the U.S., with 4,800 people here in Washington.
Last month, T-Mobile made a series of attention-getting moves — finally landing the iPhone, and rolling out a major change to the way its customers will pay for their smartphones. On our GeekWire radio show, we had the chance to speak with Andrew Sherrard, the senior vice president of marketing for T-Mobile USA, who answered our questions about the company’s new strategy.
T-Mobile USA is based in Bellevue.
Previously on GeekWire: Tempted? T-Mobile offers zero-down iPhone 5 for trade-in of iPhone 4 or 4S