Back in October, Deutsche Telekom and MetroPCS Communications announced that they had signed an agreement to combine T-Mobile and MetroPCS. The new company would retain the T-Mobile name and branding.
Today, Reuters reports that MetroPCS shareholders voted to approve the merger after Deutsche Telekom “sweetened its terms under pressure for activist shareholders”.
Deutsche Telekom reportedly agreed to reduce the combined company’s debt. Lisa Maria Garza reports:
Activist shareholder P. Schoenfeld Asset Management had led a proxy battle against the original deal, while biggest MetroPCS shareholder Paulson & Co had also threatened to vote against it. Both investors have said they were pleased with the improved terms.
The percentage of shareholders who voted in favor of the merger is unknown.
According to Bloomberg, the transaction is likely to be completed by the beginning of May.