MetroPCS Backs Deutsche Telekom | Daido Holding Group.

Online, May 16, 2013 (Newswire.com) - Daido Holding Group recently announced to investors in a meeting that Deutsche Telekom has reportedly improved the bid by its US mobile unit, T-Mobile, for MetroPCS.

The German telecommunications giant ran into stiff resistance from shareholders of MetroPCS and advisory firms. Deutsche Telekom has offered to reduce the amount of debt that the new merged company will hold and reduce the interest on the debt by half of a percentage point.

Daido Holding Group are understood to have noted that under the current offer terms, shareholders of MetroPCS will receive around $4.09 per share in cash, a total of around $1.5 billion, and will own a 26% stake in the new combined company. A shareholder vote on the deal has been rescheduled for the second quarter of the year.

The debt by the combined T-Mobile and MetroPCS to parent Deutsche Telekom has been reduced from a proposed $15 billion to $11.2 billion. Excluding the reduction in the interest rate, this improves the valuation of the deal by approximately $2.65 per share in favor of MetroPCS stakeholders. Deutsche Telekom has also said they will increase the lockup period, when the company will be unable to sell shares in the merged company, from six to eighteen months.

Daido Holding Group allegedly commented that the increased offer would significantly increase the chances of success for the deal that will bring the fourth and fifth largest mobile carriers in the US together, better enabling them to compete against rivals AT&T and Verizon Wireless. While it is unlikely to satisfy all of the stakeholders, this revised offer will probably be enough for the deal to gain majority approval.