With the MetroPCS shareholder showdown just eight days away, it appears that Deutsche Telekom may be about to blink. It’s been some six months since they made the bid, which would simultaneously boost T-Mobile USA’s spectrum position and distance the German incumbent from its US progeny.
Large shareholders have been agitating for a better offer for months, and they’ve been getting louder and more numerous. The prospects for winning the vote next week have been looking less and less good, although it’s not yet clear either way.
However, it’s clear that DT doesn’t have the momentum right now, and there is definitely a risk of getting rejected. Hence, DT is going to have to decide how much it really wants this deal to go through. Do they want it enough to sweeten the pot?
T-Mobile USA’s CEO John Legere has in the past indicated that it wasn’t a do-or-die situation, that it would just accelerate the company’s plans. He and the rest of T-Mobile USA may be ready to fight on without the MetroPCS deal, but on the other hand this soap opera has gone on long enough that it may be the German parent that blinks rather than sign on for another season of ‘what will they do about their US problem’ hand wringing from the industry.
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