Deutsche Telekom to head MetroPCS/T-Mobile board

NEW YORK Tue Mar 19, 2013 7:21pm EDT

File photo of Timotheus Hoettges attending a news conference in Bonn December 6, 2006.REUTERS/Ina Fassbender

File photo of Timotheus Hoettges attending a news conference in Bonn December 6, 2006.

Credit: Reuters/Ina Fassbender

NEW YORK (Reuters) - MetroPCS Communications Inc PCS.N said on Tuesday that Deutsche Telekom AG's (DTEGn.DE) incoming chief executive, Timotheus Hottges, would become chairman of its board after its proposed merger with T-Mobile USA.

After the deal, which still needs approval from MetroPCS shareholders, the company said it would have 11 directors with the majority coming from Deutsche Telekom, the parent company of T-Mobile USA.

MetroPCS agreed in October to a reverse merger with T-Mobile USA, but the deal faces a proxy battle from activist shareholders who have complained about the valuation. Shareholders are set to vote on the deal on April 12.

If the deal is approved, Deutsche Telekom would end up with a 74 percent stake in the combined company and MetroPCS would declare a 1-for-2 reverse stock split and pay $1.5 billion in cash to its shareholders.

The board of the combined company will include two existing MetroPCS directors - W. Michael Barnes and James Perry - and 6 directors from Deutsche Telekom.

These will include John Legere, T-Mobile USA's CEO, and Rene Obermann, Deutsche Telekom's outgoing CEO, as well as Thorsten Langheim, an M&A executive at the German telephone company and Lawrence Guffey, a managing director at Blackstone and a Deutsche Telekom board member. Raphael Kubler, who is responsible for financial planning at Deutsche Telekom, will also be on the board.

(Reporting By Sinead Carew; Editing by David Gregorio and Andre Grenon)

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Comments (2)
1jdadam wrote:
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Mar 21, 2013 1:29pm EDT  --  Report as abuse
1jdadam wrote:
This outfit is as predatory as anything the old “MA BELL” could have dreamed up. Beware, you will loose your services and be nickel and dimed for every little service you’ve had with them and ANOTHER two year contract ends up costing you more than you have ever paid before. They do NOT recognize the Federal Law of 3 day contract recension, but then they own the Feds! These people are thieves and cheats and need to be watched carefully. A true American service being buried in Corporate Fascism just like Cingular, only much more virulent. Wish we had a vaccine for these types of companies who can’t behave as the predators they are in their own Country so come to America and strip us of any honest business dealings with firms we came to trust over time! Excellent example of how the United States government works only for Corporations!

Mar 21, 2013 1:31pm EDT  --  Report as abuse
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