One of the biggest hurdles in getting the proposed acquisition deal between T-Mobile and MetroPCS has been passed, it seems, as the Department of Justice raised no objections to the matter ahead of the now-expired waiting period. The FCC and other regulatory bodies still need to put their stamp of approval on things, of course, but with the DoJ on board we don’t see any reason to believe this deal won’t be accepted with open arms by the bodies governing the airwaves.
That said, there is still a degree of uncertainty in these particular dealings. The shareholders still have to vote on the proposition, but not everyone in that group is gung-ho about the whole thing. Some believe MetroPCS is being severely undervalued, and would rather go on about their business instead of being rolled into the Deutsche Telekom monster. The deal would see $1.5 billion changing hands, and MetroPCS would only own 26% of a new company consisting of the two carriers.
Whether or not the shareholders will put their money where their mouth is when they vote on it in the coming weeks (April 12th) is unclear, but there’s enough dissension in the ranks to keep the executives of MetroPCS from popping bottles of champagne for the time being.
MetroPCS Announces Expiration of HSR Waiting Period For Proposed Combination with T-Mobile USA
DALLAS, March 5, 2013 /PRNewswire/ — MetroPCS Communications, Inc. (NYSE: PCS; “MetroPCS”) today announced that the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the Company’s proposed combination with T-Mobile USA, Inc., a wholly-owned subsidiary of Deutsche Telekom (XETRA: DTE; “Deutsche Telekom”), has expired. The proposed combination remains subject to MetroPCS stockholder approval, as well as certain other regulatory approvals and customary closing conditions. MetroPCS expects the proposed combination with T-Mobile to be completed shortly following the meeting of stockholders.
A Special Meeting of MetroPCS stockholders to vote on matters relating to the proposed combination of MetroPCS with T-Mobile has been scheduled for April 12, 2013. MetroPCS stockholders of record as of the close of business on March 11, 2013 are entitled to vote at the Special Meeting.
The MetroPCS board unanimously recommends that stockholders vote their shares FOR all of the proposals relating to the proposed combination with T-Mobile. The failure to vote or an abstention has the same effect as a vote against the proposed combination. If stockholders vote against the proposed combination, there is no assurance that MetroPCS will be able to deliver the same or better stockholder value.
Stockholders who have questions or need assistance voting their shares should contact the Company’s proxy solicitor, MacKenzie Partners, Inc. toll-free at (800) 322-2885 or call collect at (212) 929-5500.