Proxy service ISS suggests MetroPCS stockholders reject the merger with T-Mobile
ISS suggests that MetroPCS could get a better deal than the one they are being offered, which is $4.06 a share and 26% of the combined company. The report also suggests that MetroPCS does not need this merger to survive. T-Mobile owner Deutsche Telekom ends up with 74% of the company after the merger closes. At closing, the combined company plans on reducing the number of outstanding shares and raising the stock price with a 1 for 2 reverse split. The investor's stock will have doubled in price, but he will own half the number of shares as he did before the split. While the actual monetary effect is a wash, many funds are not allowed to buy a stock trading under $5. The reverse-split will take the stock over that threshold.
After the recommendation by ISS, MetroPCS issued a statement saying that the ISS report "contains material flaws and reaches the wrong conclusion." The merger has received regulatory approval by all necessary agencies and now awaits the results of the MetroPCS stockholders vote set for April 12th. What was once seen as a layup, the deal now is in jeopardy and we could see some fireworks before the April 12th vote. The bid could be raised, or another party could make a blockbuster deal to purchase either T-Mobile or MetroPCS.
1. james1 (Posts: 97; Member since: 16 Mar 2013)
f**k ISS! I hope the merger goes through with or without the greedy shareholders voting!!!
6. meowcenary (Posts: 187; Member since: 13 Apr 2012)
If you were a shareholder you would do the same. It's all about the currency that your respected country uses.
2. MartianMe (unregistered)
Another corrupt case coming from wall street...man we need to get rid of this terrorist organization..
7. meowcenary (Posts: 187; Member since: 13 Apr 2012)
Wall Street in America and in other countries different names. Guess what, they make the world go round. You want to get rid of them rise up and exercise your second ammendment right and remove them then. Start that revolution and reboot everything, see if you can do any better.
3. alexzibrit (Posts: 67; Member since: 15 Jan 2013)
Why wouldn't they do a merger, It makes all sense Logically?
4. _PHug_ (Posts: 420; Member since: 11 Oct 2011)
Sprint should buy Metro, unless they are broke
5. meowcenary (Posts: 187; Member since: 13 Apr 2012)
Sprint is set to merge with Softbank, so acquisition(s) would not be an option now.