This Metro PCS carrier is looking forward to making a deal with T-Mobile, they just wait for their shareholders to vote on the deal. Either way, T-Mobile continues with their hard work on the field after the release of their version of the iPhone and the new carrier plans.
Metro PCS is forcing their investors to vote up the carrier deal with T-Mobile. This was announced according to a letter sent on the address to the shareholders from this carrier saying that they will not offer a better value if they remain to be a single carrier. If this deal goes through, Metro PCS will declare one for two stock split in reverse and this will bring $1.5 billion to the stockholders in cash. Beside this, the investors will control 26% of the company, and the other side of the deal T-Mobile USA or Deutsche Telekom to be exact, will control the remaining 74% of this combined company.
The letter for rushing this merger is comes as a response to recent information about shareholders that call the rest of them to vote against this deal. According to that report, this call involves the investment firms Paulson & Co. and the other P. Asset Management among the group of Institutional Services. They urged Metro PCS stockholders to reject this deal and decline the merger.
Both of the investment firms are stake owners in this carrier and they make their side of the deal with saying that this deal undervalues the financial worth of this company and the future isn’t going to be that bright for them if they go under the control of T-Mobile. They simply explained that those 26% is not enough and they should fight for more. The meeting between the shareholders is scheduled for April 12 and on this date, the deal will be voted and we will know if this merger is happening or not.
This is a Win – Win situation for this little carrier Metro PCS, because they will get a lot of cash for return and they will be a part of a large carrier like T-Mobile with a possibility to sell their new no-contract plans and to be a part from the future of T-Mobile. After all, T-Mobile is number 4 carrier in US. We should wait few weeks to see what happens on the scheduled date.