MetroPCS will vote on T-Mobile deal March 28th

While the proposed acquisition of MetroPCS by T-Mobile isn’t getting nearly as much attention as that of T-Mobile’s failed acquisition by AT&T, it’s still of interest to us. MetroPCS has revealed that shareholders would get together and vote on the issue March 28th. The two parties still need to pass regulatory hurdles, which include the usual song and dance of anti-regulatory investigations and other boring legal processes. There’s not much reason to believe the government will play a part in blocking the deal, though.

The biggest problem stands to be the very shareholders who will punch their tickets late next month. It’s said that two of Metro’s major investors — hedge funds Paulson & Co. and P. Schoenfeld — are looking to vote against the deal, with doubts about proper valuation on Deutsche Telekom’s part. The two control a combined 11% of MetroPCS, and would certainly look to get more shareholders on board with votes to block the deal.

As it stands, T-Mobile would merge into MetroPCS’ current standing as a publicly traded company, and Deutsche Telekom would then get 74% of the combined companies. The remaining 26% of the company, as well as $1.5 billion, would be given to shareholders. I won’t pretend to know if MetroPCS is worth more or less than that, but if it’s not good enough for the millionaires and billionaires who own the company then who am I to argue? We’ll be keeping a close eye on this one as March quickly approaches.

[via Marketwatch]

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  • Jayshmay

    This should have happened already!!! This is a perfect match! It would beef up Tmo’s spectrum even more!!!
    I really hope for T-Mobile that this happens, and they implement Metro’s spectrum in time for the Galaxy S5!

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  • lynyrd65

    I don’t get what the big deal is. T-Mobile still doesn’t give two shits about anything but large cities and they already serve those areas with fast internet.

    Why not instead focus on the real problem, rural semi-urban and highway coverage.

    • sincarafan247

      I dont know where you live, but where I live t-mobile’s coverage is the dominant carrier. Towers everywhere. Not even Verizon can compete here.

  • Fatbastard23

    T-mobile ftw!!!

  • bob

    Isn’t metro pcs and old pcs system with a cdma evolution map? Beside a little bit of spectrum how exactly could this deal be good for tmo? Suddenly they have a boat load of dead assets and still have no working capital. I’m using tmo prepaid right now and want nothing more then big improvements. Just don’t see how this is it though.

    • Carl Rood

      From what I gathered when this was announced, it’s kind of a weird merger. On paper, MetroPCs is taking over TMobile, with DT essentially financing the thing in exchange for controlling interest in the merged company. I’m guessing this is DT’s way of eventually getting out of North America. They’ll gradually sell off stock, possibly to the current MetroPCs or TMobile senior guys, or to the merged company, itself.