MetroPCS Shareholders Advised To Vote Against T-Mobile Merger

By lommadmin

TMO Metro

T-Mobile is waiting for April 12th to arrive, as that is the day MetroPCS shareholders will vote for whether to approve the merger.

Institutional Shareholder Services (ISS) is an organization that advises major shareholders how they should vote when it comes to corporate elections and they have advised that MetroPCS owners should vote against the T-Mobile merger.

“In light of the negative market response to this transaction (shares are down 14.4 percent since announcement), the lower equity split than justified by the contribution of PCS to the combined entity, and the potential for PCS to continue to thrive as a standalone company, shareholders should vote against this transaction,” ISS wrote in its note to investors.

We already know John Paulson was against this merger from the beginning as he already felt that T-Mobile was getting the better end of the deal. Paulson put out a statement “If Deutsche Telekom wants to get MetroPCS shareholder support, we suggest Deutsche Telekom significantly reduce the debt they are taking back and/or dramatically increase MetroPCS’s pro forma share of the combined company.”

This may not be what T-Mobile wants to hear at the moment, but nothing is set in stone. Again, the merger is left in the hands of shareholders and we will find out come April 12th.