DealBook: Deutsche Telekom Walks Back Prior Statement on Sweetening MetroPCS Bid

It appears Deutsche Telekom has finally settled on its response to queries about whether it will raise a bid by its T-Mobile USA subsidiary for MetroPCS.

And that answer is, “No comment.”

Here’s what the German telecom company said on Thursday afternoon:

“In response to a variety of published rumors and reports, Deutsche Telekom clarifies that it has no comment as to possible changes to the terms of its agreement with MetroPCS Communications. Deutsche Telekom continues to believe that its existing agreement with MetroPCS provides compelling value and is in the best interests of MetroPCS stockholders, especially in light of the accelerating turnaround at T-Mobile USA.”

But earlier in the day, a Deutsche Telekom spokesman gave a slightly different answer to Reuters, which had reported that the company’s board was working on sweetening the MetroPCS offer, citing unnamed sources.

“No, we can flatly deny that,” the representative told Reuters.

The German company and its advisers are weighing whether to make a better bid, as the current offer faces enormous opposition from MetroPCS shareholders. Two of the American telecom’s biggest investors have argued that the offer should be improved or scrapped, and recently won the backing of the two major proxy advisory firms.

Under the current terms of the offer, MetroPCS shareholders would be paid about $4.09 a share and receive a 26 percent stake in the combined company.

The hedge funds leading the campaign against the deal, P. Schoenfeld Asset Management and Paulson Company, have argued that MetroPCS investors should receive a bigger stake in the merged telecom. They have also contended that the proposed terms of the debt that the combined company would assume are too onerous.

Article source: http://dealbook.nytimes.com/2013/04/04/deutsche-telekom-walks-back-prior-statement-on-sweetening-metropcs-bid/?partner=rss&emc=rss