April 17 (Reuters) - Proxy advisory firm Glass Lewis has recommended that MetroPCS Communications shareholders vote in favour of the wireless service provider’s merger with T-Mobile USA after the proposed terms were sweetened, the Wall Street Journal reported.
T-Mobile USA’s parent Deutsche Telekom improved its offer on April 10 by reducing the proposed debt load of the combined company after complaints from activist shareholders and advisory firms Glass Lewis and ISS.
“Deutsche Telekom’s revised offer adequately resolves the prior concerns that we and MetroPCS shareholders had voiced regarding the proposed merger,” Glass Lewis was reported as saying. ()
If the deal is approved by shareholders at a special meeting now scheduled for April 24, MetroPCS shareholders would receive $4.06 per share in cash, plus stock equivalent to 26 percent of the combined company. Deutsche Telekom will own the rest.
To placate MetroPCS shareholders, the German operator said that it would cut proposed intercompany debt by $3.8 billion to $11.2 billion and cut interest on this debt by 50 basis points.
MetroPCS could not immediately be reached for comment outside of regular U.S. business hours.