UPDATE 1-Deutsche Telekom to head MetroPCS/T-Mobile board
NEW YORK, March 19 (Reuters) - MetroPCS Communications Inc said on Tuesday that Deutsche Telekom AG's incoming chief executive, Timotheus Hottges, would become chairman of its board after its proposed merger with T-Mobile USA.
After the deal, which still needs approval from MetroPCS shareholders, the company said it would have 11 directors with the majority coming from Deutsche Telekom, the parent company of T-Mobile USA.
MetroPCS agreed in October to a reverse merger with T-Mobile USA, but the deal faces a proxy battle from activist shareholders who have complained about the valuation. Shareholders are set to vote on the deal on April 12.
If the deal is approved, Deutsche Telekom would end up with a 74 percent stake in the combined company and MetroPCS would declare a 1-for-2 reverse stock split and pay $1.5 billion in cash to its shareholders.
The board of the combined company will include two existing MetroPCS directors - W. Michael Barnes and James Perry - and 6 directors from Deutsche Telekom.
These will include John Legere, T-Mobile USA's CEO, and Rene Obermann, Deutsche Telekom's outgoing CEO, as well as Thorsten Langheim, an M&A executive at the German telephone company and Lawrence Guffey, a managing director at Blackstone and a Deutsche Telekom board member. Raphael Kubler, who is responsible for financial planning at Deutsche Telekom, will also be on the board.
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.