Yesterday brought news that Deutsche Telekom was considering a improved bid to help save the MetroPCS and T-Mobile merger and today has word of a delay. The delay is not on the part of Deutsche Telekom, but instead as a result of MetroPCS delaying the special stockholder meeting. That meeting was originally scheduled to take place on April 12, but has been bumped to later in the month.
MetroPCS has rescheduled the meeting for April 24. Details coming from MetroPCS note the decision to postpone the meeting was agreed upon by Deutsche Telekom. The delay will allow stockholders additional time to consider a proposal from Deutsche Telekom to revise the business combination agreement. It was also said the valid proxies that have already been submitted will remain valid.
Aside from the rescheduling of the meeting, nothing else seems to have changed. Previous details on the merger show all regulatory approvals as having been received. Basically, that means the Department of Justice, FCC and the Committee on Foreign Investment have all given their approval on the merger.
Touching back on the news from yesterday, we have yet to hear any official response on the updated bid, however it was looking like Deutsche Telekom was going to make some revisions. Some of the initial concern for the previous bid touched on the subject of debt — it looks like the original plan was to include $15 million of intercompany debt owed to Deutsche Telekom being transferred into the new company.[via PR Newswire]