Exclusive: Deutsche Telekom mulls improved MetroPCS offer - sources

Thu Apr 4, 2013 5:44pm EDT
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By Sophie Sassard and Philipp Halstrick

LONDON/FRANKFURT (Reuters) - Deutsche Telekom AG is looking into improving the terms of a proposed merger of its T-Mobile USA unit with MetroPCS Communications Inc as a last resort to win over shareholders ahead of a vote on the deal next week, two people familiar with Deutsche Telekom's thinking said on Thursday.

The board of the Bonn-based company is divided on whether to sweeten the terms of the cash and share deal to secure approval at a MetroPCS shareholder vote on April 12 and is hoping it could still avoid any change, the people said.

"They have a week to decide and they are working on it at the moment", said a third person who is familiar with MetroPCS's thinking. The people did not wish to be named because the talks are private.

Deutsche Telekom said on Thursday afternoon that it "has no comment as to possible changes to the terms of its agreement with MetroPCS" and that it continues to believe its current proposal was in the best interests of shareholders.

This was a change from the company's comment earlier on Thursday in response to a question about whether the firm was working on sweetening the deal.

A spokesman had initially said: "No, we can flatly deny that.

MetroPCS shares closed 1.5 percent higher at $11.12 on the New York Stock Exchange on Thursday. A spokesman for MetroPCS declined to comment.

Deutsche Telekom's financial advisers, Morgan Stanley and Lazard, also declined to comment.   Continued...

The logo of German company Deutsche Telekom is pictured at the CeBit computer fair in this file photo taken in Hanover, March, 6, 2012. REUTERS/Fabian Bimmer/Files