Thursday, May 2, 2013

T-Mobile US shares rise in New York Stock Exchange debut

NEW YORK (Reuters) - T-Mobile US Inc shares rose 3 percent in their debut on the New York Stock Exchange on Wednesday, after the company was created by the merger of MetroPCS Communications and Deutsche Telekom AG's U.S. unit T-Mobile USA.

Shares of the new company opened at $16.38 and had risen to $16.89 after 10 a.m. (1400 GMT), according to a company representative who was at the New York Stock Exchange.

MetroPCS and T-Mobile USA, whose combined 2012 revenue was $24.8 billion, merged to pool their spectrum resources to compete better with bigger rivals.

"It's a good debut," said Hudson Square Research analyst Todd Rethmeier. "They both had good first-quarter results, so we think there's more room for upside."

T-Mobile US, the fourth-largest U.S. mobile phone service provider, said it ended the first quarter with about 43 million customers. This compares with 55 million for third-ranked Sprint Nextel Corp .

MetroPCS shareholders voted in favor of the deal on April 24 after Deutsche Telekom, under pressure from activist investors, sweetened the terms.

Under the deal Germany's Deutsche Telekom owns 74 percent of T-Mobile US. MetroPCS shareholders received $4.06 per share in cash plus 26 percent of the combined company.

(Reporting by Sinead Carew; Editing by Lisa Von Ahn)


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