Wednesday, Oct. 3, 2012
BERLIN (AP) -- The parent company of T-Mobile USA says it is merging its cell phone business with MetroPCS Communications.
Deutsche Telekom AG says its board of directors and the supervisory board have approved the merger Wednesday. It says the board of MetroPCS has also accepted the deal.
It says Deutsche Telekom will hold 74 percent of the new business. MetroPCS's shareholders will have the remaining stake and receive a payment of about $1.5 billion.
The companies confirmed they were in talks Tuesday. Analysts said the deal could shore up two struggling players in the U.S. wireless industry.
The combination with Dallas-based MetroPCS, which has 9.3 million subscribers, still leaves T-Mobile USA -- the country's fourth-largest cellphone company with 33.2 million subscribers -- trailing the market's No. 3, Sprint Nextel Corp.
(Copyright 2012, The Associated Press)