Deutsche Telekom’s incoming chief executive Timotheus Hoettges is set to become chairman of the combined T-Mobile USA and MetroPCS business, providing the target’s shareholders approve the merger. Hoettges, who is set to replace current DT CEO Rene…
Deutsche Telekom’s incoming chief executive Timotheus Hoettges is set to become chairman of the combined T-Mobile USA and MetroPCS business, providing the target’s shareholders approve the merger.
Hoettges, who is set to replace current DT CEO Rene Obermann at the start of 2014, is currently CFO and deputy CEO at the German incumbent. Obermann is also set to join the new entity as a director, in spite of the fact that he is leaving DT next year to take the reins at Dutch cableco Ziggo.
Two MetroPCS directors would also have seats on the 11-strong board, Michael Barnes and James Perry.
John Legere would also become a member as new CEO of the merged operator. He is currently CEO at DT subsidiary T-Mobile USA.
The proposed CFO and heads of T-Mobile USA and MetroPCS within the combined entity will not have seats.
All of these appointments are subject to MetroPCS shareholders voting in favour of the proposed reverse merger – agreed between the companies in October – at an EGM on 12 April.
Some of the target’s more activist shareholders have been vociferous in their criticism of the terms of the tie-up. Last week MetroPCS’ CEO Roger Linquist dismissed concerns, saying the merger would create value for shareholders and that the terms of the transaction were fair.
Some analysts have suggested that Deutsche Telekom might propose improved terms to MetroPCS shareholders before the EGM to guarantee the deal passes.
