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MetroPCs wants its shareholders to vote thumb’s up on the T-Mobile merger.
In a letter sent today by MetroPCS to its investors, the company said it could provide no assurance that it would offer better shareholder value remaining as a standalone carrier, according to Reuters. If approved, the deal would see MetroPCs declare a 1-for-2 reverse stock split and give its stockholders $1.5 billion back in cash.
Investors would actually own 26 percent of the combined company, while T-Mobile USA’s parent Deutsche Telekom would wind up with the remaining 74 percent.
The letter urging approval of the merger is clearly a response to recent calls to vote against the deal. Investment firms Paulson & Co. and P. Schoenfeld Asset Management and the advisory group Institutional Shareholder Services have been urging MetroPCS stockholders to decline the merger.
Paulson & Co. and P. Schoenfeld Asset Management both own stakes in MetroPCs and argue that the deal undervalues the company’s financial worth. ISS has said that stockholders should fight for a bigger slice of the company than just 26 percent.
MetroPCs will hold a stockholder meeting on April 12 to vote on the proposed merger.
