By Debbie Cai
The Department of Justice has asked MetroPCS Communications Inc.
(PCS) for more information in relation to its proposed reverse
merger with Deutsche Telekom AG's (DTEGY, DTE.XE) U.S. subsidiary,
T-Mobile USA.
MetroPCS said it will cooperate fully with the DoJ so the deal
can be approved as soon as possible, and is confident the merger
will be found procompetitive and proconsumer. It expects the
transaction, which is subject to shareholder and regulatory
approvals, to be completed in the first half of next year.
The information request will extend the waiting period under the
HSR Act, an antitrust act, to 30 days after the companies
comply.
Last month, MetroPCS agreed to the reverse merger, which means
it will effectively its larger rival. Deutsche Telekom shareholders
will own 74% of the combined company, while MetroPCS shareholders
will own the rest and be paid $1.5 billion in cash.
MetroPCS's latest third-quarter earnings more than doubled as
the prepaid wireless-service provider posted higher revenue and had
a $53 million gain from a securities settlement.
The German telecommunications company earlier this month posted
a hefty quarterly loss due to an impairment charge at T-Mobile USA,
which continues to lose contract customers on a broad scale.
Shares of MetroPCS were down seven cents at $10.93 in
after-hours trading. The stock is up 36% over the past 12
months.
Amerian depository shares of Deutsche Telekom closed Monday at
$10.62 and were unchanged after hours. The stock is down 16% over
the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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