Deutsche Telekom AG will likely be forced to sweeten the terms of its deal with MetroPCS Communications Inc after a proxy advisory firm recommended that shareholders vote against the proposed transaction, according to analysts.Corporate governance consultants ISS said late on Wednesday that it was backing the efforts of two big MetroPCS shareholders to block the company's proposed merger with T-Mobile USA, the U.S. arm of Deutsche Telekom.Paulson & Co, the biggest MetroPCS shareholder, and another big holder P. Schoenfeld Asset Management had both committed to vote against the deal on concerns about the valuation and the amount of debt being assigned to the combined company.Even so, another big shareholder Madison Dearborn had put its support behind the deal.
MetroPCS Communications, Inc. (MetroPCS Communications) is a wireless telecommunications carrier, which offers wireless broadband mobile services primarily in selected metropolitan areas in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco and Tampa/Sarasota metropolitan areas. Shares of PCS remained unchanged at $10.53. In the past year, the shares have traded as low as $5.53 and as high as $14.51. On average, 6358490 shares of PCS exchange hands on a given day and today's volume is recorded at 325800.
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