Some MetroPCS Inc. shareholders are trying to block the operator's merger with T-Mobile USA, claiming the $1.5 billion deal undervalues the company.
Courthouse News Service reports that MetroPCS shareholders filed two lawsuits in the Dallas Country Court last week.
The complaints claim that:
- The deal "drastically undervalues" MetroPCS at $12.48 per share.
- The deal was structured to favor one buyer -- T-Mobile owner Deutsche Telekom AG -- with clauses that allow it to make a new matching bid if rivals attempt to top its offer.
- Executives from MetroPCS stand to get millions of dollars in special payments not being made to ordinary shareholders through the deal.
Why this matters
Blocking a T-Mobile/MetroPCS merger would make Deutsche Telekom's exit from the U.S. market a much more difficult affair.
â€” Dan Jones, Site Editor, Light Reading Mobile