Dealbook News Alert
The New York Times
Wednesday, October 3, 2012 -- 9:11 AM EDT
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T-Mobile Seals Deal With MetroPCS
The parent company of T-Mobile agreed to buy MetroPCS on Wednesday in a complex transaction aimed at strengthening the struggling cellphone service provider as it competes with bigger rivals.
The merger is aimed at making T-Mobile a more robust competitor to Sprint Nextel in the realm of low-cost cellphone service, as well as helping the company gain more customers and resources to build out a next-generation data network.
Under the terms of the deal, MetroPCS will conduct a 1-for-2 reverse stock split and pay out $1.5 billion in cash to its existing shareholders, or about $4.09 a share. It will then issue new stock worth about 74 percent to T-Mobile’s parent, Deutsche Telekom, leaving existing investors with a 26 percent stake.
Read More:
http://dealbook.nytimes.com/2012/10/03/t-mobile-seals-deal-with-metropcs/?emc=na
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