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MetroPCS shareholders to vote on T-Mobile merger March 28th

Posted: , by Alan F.

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MetroPCS shareholders to vote on T-Mobile merger March 28th
Back in October, we explained how the MetroPCS and T-Mobile deal was structured as a reverse merger meaning that in theory, the smaller MetroPCS was buying the larger T-Mobile. This way, T-Mobile would instantly be a public company once the deal closed. T-Mobile parent Deutsche Telekom will own 74% of the combined company when the dust settles on the merger.

MetroPCS share holders will vote on the merger March 28th

MetroPCS share holders will vote on the merger March 28th

As a public company, before the merger is completed, shareholders of MetroPCS must approve it. A vote is scheduled for March 28th and not all MetroPCS shareholders are thrilled with the deal. A couple of Hedge Funds, P. Schoenfeld and Paulson & Co, have complained about the merger which gives MetroPCS shareholders $4.09 a share in cash and together, a 26% ownership in the new company which is expected to be named T-Mobile. P. Schoenfeld has filed with the SEC, saying that the deal is unfair. The fund owns 2.3% of the carrier's shares which it will vote against the deal, and if Paulson votes its 8.7% stake the same way, it could make things interesting.

Even if MetroPCS shareholders let the deal go through, the merger still will require regulatory approval in the U.S.

source: Marketwatch via AndroidCentral

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posted on 26 Feb 2013, 08:00

1. TheMan (Posts: 346; Member since: 21 Sep 2012)


I don't know what, if any, return on investment these funds will see, but considering MetroPCS downward spiral -- shares are half the value they were 18 months ago -- I'm a little surprised.

Just read that the call volume is quadruple normal levels just ahead today's earnings report. Seems like investors are still bullish, so I can see where this is coming from, i.e., some investors believe they can get more value

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