T-Mobile USA Merger With MetroPCS Clears Last Regulatory Hurdle
Deutsche Telekom AG (DTE)’s plan to merge its U.S. unit T-Mobile USA with MetroPCS Communications Inc. (PCS) cleared the last regulatory hurdle, leaving the decision to MetroPCS shareholders next month.
The Committee on Foreign Investment in the United States approved the deal, Bonn-based Deutsche Telekom said in an e- mailed statement today. The merger of the nation’s fourth- and fifth-largest wireless carriers was cleared by the Federal Communications Commission and the Department of Justice last week.
Deutsche Telekom is trying to revitalize T-Mobile USA after a $39 billion sale to AT&T Inc. failed in 2011. Two of MetroPCS’s largest shareholders, Paulson & Co. and P. Schoenfeld Asset Management, have said they’re opposing the transaction, which would give the German phone company a 74 percent stake in the combined company. MetroPCS shareholders are scheduled to vote on the deal on April 12.
Deutsche Telekom shares declined as much as 1.2 percent and were down 0.7 percent as of 10:23 a.m. in Frankfurt today. The combined U.S. carrier would have an enterprise value of about $30.5 billion, based on MetroPCS’s closing stock price yesterday.
To contact the reporter on this story: Cornelius Rahn in Berlin at email@example.com
To contact the editor responsible for this story: Kenneth Wong at firstname.lastname@example.org