Deutsche Telekom on Wednesday sweetened its terms for the proposed merger between T-Mobile USA and MetroPCS Communications by reducing the combined company's debt due to pressure from activists and proxy advisory firms.Shares of MetroPCS rose 2 percent in late trade after Deutsche Telekom, the parent of T-Mobile USA, said it would reduce the debt burden for the combined company by $3.8 billion and lower the interest rate on the debt by 50 basis points.Deutsche Telekom also expanded the lock-up period, during which it is prohibited from publicly selling shares in the company, by 12 months to 18 months after the deal close.The new proposal will reduce intercompany debt to $11.2 billion from a proposed $15 billion for the new company.
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 traded higher by 3.31% or $0.37/share to $11.56. In the past year, the shares have traded as low as $5.53 and as high as $14.51. On average, 6548050 shares of PCS exchange hands on a given day and today's volume is recorded at 23401164.
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