MetroPCS expects stockholders to approve T-Mobile deal at meeting in February or March
MetroPCS CFO Braxton Carter told a Morgan Stanley investor conference on Friday that the company had spoken with several other potential suitors, but is now firmly 100% behind the deal it has inked with T-Mobile.The combination of the nation's fourth and fifth largest carriers should strengthen T-Mobile and make them a more viable challenger in the industry.
Carter also said that the combined company will outperform some of its earlier estimates for profit margins thanks to savings between the two firms and MetroPCS' expansion into new parts of the country. Carter added that he believes that MetroPCS shareholders, who by law need to approve the deal, are behind the acquisition. Both firms filed proxy statements with the SEC on Friday to get the votes of their respective shareholders on the deal. MetroPCS is expected to hold its shareholder vote for February or March.
Last year, Sprint and its CEO Dan Hesse were said to have agreed on an $8 billion buy out of MetroPCS only to have Sprint's board reject the deal. Both T-Mobile and MetroPCS' boards have agreed to the current acquisition leaving stockholders and regulators left to sign off on the deal.
source: Reuters
"We think it is the right transaction, and we are confident our shareholders will approve it. There are massive synergies from this, the creation of a value player with a multi-segment strategy. It's possible that we can go through in one round of SEC review process, but realistically it will go through multiple rounds. We are very focused on going as quickly as possible."-Braxton Carter, CFO, MetroPCS
source: Reuters
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