Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, April 10, 2013

Deutsche Telekom sweetens MetroPCS deal, cuts debt load, (NYSE: PCS)

Deutsche Telekom sweetened its terms on Wednesday 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.The debt reduction, excluding the interest-rate change, improves the deal's valuation by about $2.67 a share for MetroPCS shareholders.Deutsche Telekom has not provided a total per-share valuation for the deal because T-Mobile USA is not public.

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, 6417080 shares of PCS exchange hands on a given day and today's volume is recorded at 23416644.



Source