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Deutsche Telekom seeks FCC approval on T-Mobile-MetroPCS approval
Posted On 12 Mar 2013
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Northern, WI 03/12/2013 (avauncer) - The U.S. Federal Communications Commission may show green signal to a merger between Deutsche Telekom AG’s (FRA:DTE) subsidiary T-Mobile USA and MetroPCS Communications Inc. (NYSE:PCS). The FCC is expected to approve the merger without holding a vote.
An attorney for the Communications Workers of America, Monica Desai said the FCC may approve the deal “at the bureau level instead of the commission level.”
The German telecom firm Deutsche Telekom AG, parent company of T-Mobile USA, and MetroPCS have filed applications seeking Commission approval for the merger.
Under the deal, T-Mobile USA and MetroPCS will be combined, with Deutsche Telekom holding 74% stake in the combined entity and the remaining 26% would be owned by MetroPCS shareholders.
T-Mobile USA, the fourth largest wireless carrier in the U.S, while MetroPCS offers wireless services in nineteen metro cities across the U.S.
Recently, the U.S. Department of Justice has given “no objection” certificate to the merger.
On the other hand, the Communications Workers of America is not against the merger deal, but it wants to offer job security to employees working in both T-Mobile and MetroPCS. The workers union feels that merging the entities could result in significant number of job losses.
Shares of Deutsche Telekom AG (FRA:DTE) fell by 0.82% and currently trading at $8.37.
Shares of MetroPCS Communications Inc. (NYSE:PCS) fell by 1.90% and currently trading at $10.30.
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