Deutsche Telekom’s US subsidiary T-Mobile USA and MetroPCS have completed their reverse merger agreed last October to form T-Mobile US. T-Mobile USA has been merged into MetroPCS in a reverse takeover. Today the CEO of the combined company John…
Deutsche Telekom’s US subsidiary T-Mobile USA and MetroPCS have completed their reverse merger agreed last October to form T-Mobile US.
T-Mobile USA has been merged into MetroPCS in a reverse takeover.
Today the CEO of the combined company John Legere rang the opening bell at the New York Stock Exchange. It is trading under the ticker TMUS and opened at US$16.25.
“The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the US wireless market,” commented Legere.
Deutsche Telekom had to sweeten the terms of its bid for MetroPCS following a campaign from hedge funds that railed against the deal, and the disapproval of influential proxy firms ISS and Glass Lewis, which recommended to shareholders to vote against the original deal.
The German incumbent improved the terms of its offer by paring the debt the merged company would hold by US$3.8bn and cutting the interest on that debt. It also pledged not sell stock in the merged company for 18 months.
DT holds 74% of T-Mobile US while former shareholders of MetroPCS own the remaining 26% of shares.