Mergers in Todays Businesses

Mergers and Acquisitions:

Article 1

On Wednesday, Germany-based Deutsche Telekom's U.S. unit, T-Mobile, and MetroPCS Communications Inc. (PCS) confirmed that they have entered into a merger agreement. The deal brings together the fourth and fifth largest U.S. wireless carriers. MetroPCS is a dominant player in the pre-paid wireless market.

Under the terms of the merger agreement, PCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders and acquire the entire capital stock of T-Mobile by issuing Deutsche Telekom 74% of its common stock on a pro-forma basis. The new company will retain the T-Mobile name. Deutsche Telekom will hold a 74% stake in the new company, while PCS shareholders will hold the remaining 26% stake.

The new company, which will be publicly traded, will be led by John Legere, T-Mobile's Chairman and CEO. T-Mobile and MetroPCS will operate as separate brands.

Last year, regulators had blocked AT&T's (T) takeover of T-Mobile on antitrust grounds. Through the transaction, Deutsche Telekom was looking to exit the U.S. market, where it has not had much success. By merging T-Mobile with MetroPCS, Deutsche Telekom has re-committed itself to the U.S. market even though the merger has been structured in a way that would allow Deutsche Telekom to easily exit in the future, if it chooses to.

Article 2

Oct 4 (Reuters) - Networking equipment company Cisco Systems Inc said on Thursday it has acquired virtual networking company vCider to defend itself from competitors in the cloud computing business.

VCider, a privately held company founded in 2010, specializes in offering products that let organizations create virtual private networks and link data centers.

Cisco, which plans to integrate vCider into its cloud computing unit, did not disclose financial terms.

Cisco has been sounding out potential acquisitions in the virtualized networking market for some time but in July lost out to joint-venture partner...