D.Telekom board to discuss MetroPCS deal - sources
FRANKFURT, April 10
FRANKFURT, April 10 (Reuters) - Deutsche Telekom's supervisory board will meet on Wednesday to discuss the proposed deal to merge its U.S. mobile unit with rival MetroPCS ahead of a contested vote scheduled for Friday, two people close to the situation said.
The board will not necessarily make a final decision on the deal at the meeting, one of the people said.
The Wall Street Journal reported earlier that Deutsche Telekom was likely to improve the terms and could announce them as early as Wednesday. The paper also said the new terms would likely include a reduction in the amount of debt that will be transferred to the new company.
The Bonn-based company has been weighing whether to sweeten the terms of the MetroPCS tie-up as a last resort to win over MetroPCS shareholders ahead of the vote, sources told Reuters last Thursday.
Investors holding about 12 percent of MetroPCS shares have campaigned against the deal, arguing that it undervalues MetroPCS and will burden the new company with too much debt.
The dissidents, which include Paulson & Co, the biggest MetroPCS shareholder, and P. Schoenfeld Asset Management (PSAM), got key backing when proxy advisory firms ISS and Glass Lewis recommended opposing the merger.
Deutsche Telekom declined to comment.
MetroPCS shares were trading 2.9 percent higher by 1641 GMT.
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