MetroPCS shareholders sue over T-Mobile merger

MetroPCS shareholders sue over T-Mobile merger
MetroPCS shareholders have sued over the upcoming merger with major carrier T-Mobile USA.

The shareholders claim the new merger will "drastically undervalue" the company.



Additionally, they suit claims that the MetroPCS board of directors are "conflicted and serving its own financial interests" rather than that of its shareholders.

Reads the complaint: "The process leading to the proposed acquisition was tainted by conflicts, tilted towards T-Mobile and driven entirely by the board and company management, who together control 15.4 percent of PCS' outstanding stock and seek liquidity for their illiquid holdings. [Metro]PCS' officers and directors will receive millions of dollars in special payments -- not being made to ordinary shareholders -- for currently unvested stock options, performance units and restricted shares, all of which shall, upon the merger's closing, become fully vested and exercisable,"

In the deal, T-Mobile USA will merge with MetroPCS with the smaller company taking a 26 percent stake in the combined company and gaining $1.5 billion in cash. Deutsche Telekom, parent of T-Mobile, will keep the remaining stake.

The deal still requires FCC and DOJ approval, which will likely take 6 months.

Written by: Andre Yoskowitz @ 16 Oct 2012 19:46
Tags
T-Mobile acquisitions Merger Deutsche Telekom MetroPCS
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  • 2 comments
  • JST1946

    MetroPCS sucks anyways ask anybody and they will tell you.

    20 Year U.S.Army Veteran.Vietnam 1969-1972 101st Abn.Div.

    16.10.2012 20:19 #1

  • bdaleypsu

    It seems that no progress can ever be made in the US anymore - everything involves a lawsuit.

    18.10.2012 08:01 #2

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