MetroPCS shareholders file lawsuit to block the deal with T-Mobile
The MetroPCS shareholders also object to clauses in the deal that prevent another party from making a higher bid for the carrier. Sprint had been mentioned as a potential suitor, but Japan's Softbank has acquired 70% of the nation's third largest carrier. The plaintiffs also point out that MetroPCS executives stand to make a fortune on the deal as stock options and restrictive shares immediately become vested upon the closing of the deal. Management also stands to receive 'Change of Control" payments once the deal is final. The insinuation is that the Pre-paid carrier's board and its executives are not looking out for the common stockholders in the deal, and instead is concerned only with the fortunes that they will reap.
According to the suit, a no-solicitation clause in the deal prevents MetroPCS from talking to or providing information for a third party bidder except in an "extremely limited" situation. T-Mobile also has the ability to match any higher offer and will receive a $150 million payment if MetroPCS decides to take a higher bid from another company.
The goal of the common stockholders now is to use every legal tool that they have to try to force Deutsche Telekom to raise the price of the deal, or remove the hurdles for a higher offer from a third party. And while it seems a shame to have to put more money in the pockets of the attorneys, MertroPCS holders do have to make sure that their legal rights are not trampled on by Carly and her runaway bike.
source: OpposingViews via Phandroid
2. mihaidenis posted on 15 Oct 2012, 21:06 0 0
The global crysis had lead the sharks
to became more and more agressive.
Finally they'll eat each other leading
to a small competition.
And to dissapointment of the
This happens in all areas not
only in telecom.
4. snowgator posted on 15 Oct 2012, 22:40 0 0
This is totally within their rights and is understandable.
May not make a huge difference, but it's in their right. If no other roadblocks show up, this alone will not stop it. Metro does not have enough cash In investors to really challenge this.
7. andynaija posted on 16 Oct 2012, 00:29 0 0
I'm sure Metro has been doing fine on their own...
6. cncrim posted on 16 Oct 2012, 00:01 0 0
the investors have to right to sue and challeged the merge and I might see asking for like 10 to 20 percent more but they are also getting greedy, thinking that their share is worth triple. As far i see, if no big road block ahead like FCC I don't thinkg shareholder can do anything.