Apr, 03 2013

MetroPCS’ merger with T-Mobile seemed like a done deal with only the technicality of an approval by shareholders standing in the way. While it was initially believed that the approval would go off without a hitch, new opposition could put a damper on the impending April 12th vote.

MetroPCS investor P. Schoenfeld Asset Management LP is openly questioning the deal being offered, and is inviting shareholders to take part in an April 4th webcast that will outline their opposition. Other investors against the deal include Institutional Shareholder Services and Glass, Lewis & Co..

Analysts now believe T-Mobile parent company Deutsche Telekom will need to “sweeten” the deal being offered to MetroPCS shareholders or risk losing their bid when put to a vote. Some investors believe the deal creates too much debt for MetroPCS, while others see an agreement as the only way for the smaller carrier to remain competitive in a crowded wireless market. For top investment firms, support of the merger is split.

MetroPCS is urging shareholders to approve the merger, and the deal will likely get done after receiving all the necessary regulatory approvals. Whether or not it comes under the original terms or if DT reworks to deal to be slightly more agreeable to shareholders is the main question at play here.

[via Bloomberg]

local_offer    acquisitions  T-Mobile