By Dow Jones Business News, March 21, 2013, 07:36:00 AM EDT
By Saabira Chaudhuri
MetroPCS Communications Inc. (PCS) and Deutsche Telekom AG's (DTEGY, DTE.XE) T-Mobile USA Inc. said they have received
all regulatory approvals needed for their pending merger.
The wireless carriers said the Committee on Foreign Investment in the U.S. advised Deutsche Telekom and MetroPCS on
Wednesday that it has determined there are no unresolved national-security concerns and it has therefore concluded its
review of the deal.
The latest approval came after U.S. regulators approved the combination of the two wireless carriers last week. The
merger would create a publicly traded company of which Deutsche Telekom would own 74%.
For the merger to take place, the only obstacle that remains is securing the support of MetroPCS shareholders.
Shareholders of the pay-as-you-go carrier will vote on whether to approve the deal at an April 12 meeting.
The companies said Thursday that they expect the merger to close shortly after the meeting.
MetroPCS also again urged shareholders to vote in favor of the deal. The company has been battling a slew of
shareholder opposition lately. Hedge funds Paulson & Co. and P. Schoenfeld Asset Management LP have argued that the new
company would have too much debt, preventing it from effectively competing with peers, and that the interest being
charged by Deutsche Telekom is unreasonable. The two shareholders have also argued for better terms, an alternate bidder
or remaining independent.
Shares of MetroPCS closed Wednesday at $10.57 and were inactive in recent premarket trading. The stock has risen 7.8%
in the past 12 months.
Write to Saabira Chaudhuri at firstname.lastname@example.org.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2013 Dow Jones & Company, Inc.