T-Mobile USA Inc., the Deutsche Telekom AG (DTE) division that agreed to a merger with MetroPCS Communications Inc. (PCS:US) in October, named a new board for the combined company, with Timotheus Hoettges serving as chairman.
The board will have 11 members, including T-Mobile USA Chief Executive Officer John Legere, who’ll also run the new company, and two directors of MetroPCS, according to a statement yesterday.
Hoettges, who will lead the board, is chief financial officer for Bonn-based Deutsche Telekom and set to take over as CEO after this year. Rene Obermann, the German phone company’s current CEO who plans to join Dutch cable provider Ziggo NV (ZIGGO) in 2014, will also serve on the board.
The proposal to merge T-Mobile USA and MetroPCS won approval from the Federal Communications Commission and Justice Department last week, moving it a step closer to fruition. The deal would combine the fourth- and fifth-largest U.S. wireless carriers, creating a stronger competitor to Verizon Wireless and AT&T Inc. (T:US)
Two of MetroPCS’s largest shareholders, Paulson & Co. and P. Schoenfeld Asset Management, have said they’re opposing the transaction. A shareholder meeting to vote on the deal will be held April 12.
Deutsche Telekom added less than 1 percent to 8.54 euros at the close in Frankfurt. Shares of Richardson, Texas-based MetroPCS rose 1.1 percent to $10.57 at the close in New York. The stock has climbed 6.3 percent this year.
The joint carrier would have an enterprise value of about $30.3 billion, based on MetroPCS’s stock price.
To contact the reporters on this story: Scott Moritz in New York at firstname.lastname@example.org; Cornelius Rahn in Berlin at email@example.com
To contact the editor responsible for this story: Nick Turner at firstname.lastname@example.org