MetroPCS Investors Try to Block T-Mobile Deal

2012-10-17 17:08:40

Some MetroPCS Inc. (NYSE: PCS) shareholders are trying to block the operator's merger with T-Mobile USA , claiming the $1.5 billion deal undervalues the company.
Courthouse News Service reports that MetroPCS shareholders filed two lawsuits in the Dallas Country Court last week.
The complaints claim that:
The deal "drastically undervalues" MetroPCS at $12.48 per share.
The deal was structured to favor one buyer -- T-Mobile owner Deutsche Telekom AG (NYSE:DT) -- with clauses that allow it to make a new matching bid if rivals attempt to top its offer.
Executives from MetroPCS stand to get millions of dollars in special payments not being made to ordinary shareholders through the deal.

Why this matters

Blocking a T-Mobile/MetroPCS merger would make Deutsche Telekom's exit from the U.S. market a much more difficult affair.
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