NEW YORK, March 19 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
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
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.