Deutsche Telekom, Europe's biggest telecommunications company, will buy the remainder of SunCom Wireless Holdings for $1.6 billion in cash, an Associated Press report said.
The Associated Press report, quoting the company, said the deal would expand coverage by its T-Mobile USA unit across the southeastern US and into the Caribbean, with customers in the Carolinas, Tennessee, Georgia, Puerto Rico and the US Virgin Islands.
Bonn-based Deutsche Telekom said it will also assume $800 million of debt in the deal, the report said.
SunCom, based in Berwyn, Pa., counts more than 1.1 million customers and revenue of $242.5 million. T-Mobile is based in Bellevue, Wash.
Under the terms approved by the boards of both companies, holders of SunCom common stock will receive $27 per share in cash, a 23% premium over Friday's closing price of SunCom common shares, the Associated Press report added.
SunCom said that Highland Capital Management LP and Pardus Capital Management, who together own more than 50% of SunCom's issued common stock, have signaled their intent to vote in favor of the deal.The deal is subject to regulatory approvals and is expected to be completed by 2008, the report said.