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MetroPCS Shareholder Wants More From T-Mobile Merger
Published on:
Another major shareholder in the USA mobile network, MetroPCS has criticized the managements plans to merge the company with its larger rival network, T-Mobile USA
Under the terms of the merger, MetroPCS shareholders will end up with a quarter of the merged company, and US$1.5 billion in cash as a special dividend. The merged company would remain listed on the US stock exchange.
However, some shareholders argue that the management should have held out for a better offer in the consolidation wave affecting the US telecoms market.
Paulson & Co, which owns 8.7 percent of MetroPCS, and is the largest single shareholder in the company told Reuters that the company has not decided whether it will vote in favour of the merger, but did say that "it may be more prudent for PCS to remain independent and explore other higher value alternatives."
They also said that the new company would end up with "too much debt, the interest rate on Deutsche Telekom's debt financing is too high, and the exchange ratio is too low for PCS stockholders,"
Another shareholder, P. Schoenfeld Asset Management, which owns 2 percent of the company has already said that it wont support the merger when it is put to the shareholder vote.
On the web: Reuters
Tags: [metropcs] [t-mobile usa] [USA]
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