Tuesday, 23 September 2014
Last updated 9 hours ago
Apr 12 2013 | 10:39am ET
Weeks after blasting Paulson & Co. and P. Shoenfeld Asset Management as "greedy hedge funds," T-Mobile is sweetening the pot for the two.
T-Mobile owner Deutsche Telekom's new offer to acquire MetroPCS Communications includes $3.8 billion less debt, and an agreement to hold the company for three times as long as originally planned.
While Paulson said it still needed to review the new proxy statement and P. Shoenfeld said "the revised transaction terms do not reflect all the improvements we were seeking," both hedge funds said they would likely back the new deal. Current MetroPCS shareholders will own 26% of the combined T-Mobile-MetroPCS.
Deutsche Telekom said it would remain an investor in the company for at least 18 months, and cut the interest rate on the lower debt by about a half percentage point.
Last month, T-Mobile CEO John Legere vowed that the merger would go forward, "despite the several greedy hedge funds that are trying to take a double dip out of that process." But the opposition of Paulson and P. Shoenfeld, who own a combined 12% of MetroPCS, appears to have worked: The New York Times reports that, had the vote on the original proxies gone forward today, success for T-Mobile was "mathematically impossible."
"We feel our central goal of making the combined PCS/T-Mobile company more competitive and valuable for all shareholders, including Deutsche Telekom, resulting in obtaining superior value for PCS shareholders and believe that these revised terms are the best available alternative for PCS shareholders at this time."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.