MetroPCS shareholders revolt over T-Mobile deal
Maybe the T-Mobile/MetroPCS (PCS) merger isn’t a done deal after all. As TmoNews reports, some MetroPCS shareholders have filed a lawsuit to block the merger and have accused the companies of “cheating shareholders” by “drastically” undervaluing MetroPCS’ worth and short-changing shareholders’ compensation. The disgruntled shareholders say that the merger has been “tainted by conflicts, tilted towards T-Mobile and driven entirely by the board and company management,” whom the shareholders allege will benefit disproportionately from the current terms of the deal at the shareholders’ expense.
T-Mobile this month said that its merger with MetroPCS was “structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’ common stock on a pro forma basis.”
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