T-mobile’s parent to buy Metropcs

The New York Times reported yesterday that the parent company of T-Mobile USA had agreed to buy MetroPCS. The merger is aimed at making T-Mobile a stronger competitor to Sprint Nextel. MetroPCS will conduct a one-for-two reverse stock split and pay out $1.5bn in cash to its existing shareholders, or about $4.09 a share. It will then issue new stock worth about 74% to T-Mobile’s parent, Deutsche Telekom, leaving existing MetroPCS investors with a 26% stake.