T-Mobile USA parent Deutsche Telekom sweetened its offer for MetroPCS shareholders less than two days before MetroPCS shareholders will vote on a merger between MetroPCS and T-Mobile. The move represents a major concession by DT to MetroPCS shareholders, which have been demanding for weeks that the company improve its offer.
As T-Mobile USA parent Deutsche Telekom hurtles toward an April 12 meeting where MetroPCS shareholders will vote on a merger with T-Mobile, it has one distinct advantage: it gets to count the votes.
Deutsche Telekom denied a Reuters report that said the company is considering changing the terms of T-Mobile USA's proposed merger with flat-rate player MetroPCS, whose shareholders will vote on the deal April 12.
Institutional Shareholder Services, an influential proxy advisory firm seen as an arbiter between warring shareholders, recommended MetroPCS shareholders vote against the carrier's proposed merger with T-Mobile USA on April 12.
T-Mobile USA CEO John Legere expressed strong confidence Tuesday that MetroPCS shareholders will approve T-Mobile's planned merger with the flat-rate carrier when they vote on the deal April 12.
MetroPCS reiterated its call to shareholders to approve its merger with Deutsche Telekom's T-Mobile USA, arguing that no other company has emerged since last fall to make a counter bid for the company.
With shareholder approval essentially all that stands between T-Mobile USA merging with MetroPCS, one minority institutional MetroPCS investor is doing all it can to draw attention to what it sees as the flaws in the deal. P. Schoenfeld Asset Management LP, whose holdings represent about 2 percent of MetroPCS shares, sent a letter to MetroPCS shareholders urging them to vote against the deal and promising to deliver a white paper that explains its opposition.
MetroPCS sent a letter to its shareholders urging them to approve its planned merger with T-Mobile USA when they vote on the deal April 12, arguing that minority shareholders are spreading misperceptions about the agreement. Meanwhile, a lawyer for the Communications Workers of America union said in an FCC filing that the commission may approve the deal at the bureau level rather through a formal vote by the FCC's five commissioners.
MetroPCS is facing pressure on multiple fronts from minority shareholders over its proposed merger with T-Mobile USA, with its largest single investor coming out against the deal and another one urging the company to update its regulatory filings ahead of a shareholder vote on the deal.
The largest single MetroPCS shareholder, hedge fund Paulson & Co., said it may vote against MetroPCS' merger with Deutsche Telekom's T-Mobile USA, adding a new voice to shareholder unrest over the deal.