No new terms for T-Mobile-MetroPCS merger, Deutsche Telekom says

Deutsche Telekom, speaking to FierceWireless, denies a report that it's considering changing the terms of T-Mobile's proposed merger with MetroPCS.

T-Mobile CEO Jon Legere talks about the company's new data plans and iPhone at an event in New York. Lori Grunin/CNET
Looks like there won't be any sweetened deal terms for the T-Mobile/MetroPCS merger, as much as MetroPCS shareholders may wish.

Deutsche Telekom, speaking with FierceWireless, refuted a Reuters report from earlier today that it was considering changing the terms of the merger agreement reached in October.

"We are not considering changing the terms of the proposed merger," DT spokesman Philipp Kornstaedt told FierceWireless.

The company later gave CNET this statement:

In response to a variety of published rumors and reports, Deutsche Telekom clarifies that it has no comment as to possible changes to the terms of its agreement with MetroPCS Communications. Deutsche Telekom continues to believe that its existing agreement with MetroPCS provides compelling value and is in the best interests of MetroPCS stockholders, especially in light of the accelerating turnaround at T-Mobile USA.
The agreement signed in October gives MetroPCS shareholders $1.5 billion and a 26 percent stake in the new company. Deutsche Telekom will own the remaining 74 percent of the company.

However, some prominent investors and shareholder advisory groups have argued that the deal undervalues MetroPCS' financial worth. As a result, investment firms Paulson & Co. and P. Schoenfeld Asset Management and the advisory group Institutional Shareholder Services have been urging MetroPCS stockholders to decline the merger. MetroPCS, meanwhile, earlier this week urged its shareholders to approve the deal. MetroPCS will hold a stockholder meeting on April 12 to vote on the proposed merger.

Updated on April 5 at 8:20 a.m. PT with comment from Deutsche Telekom.

 

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