Light Reading

MetroPCS Investors Try to Block T-Mobile Deal

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
10/16/2012
50%
50%
Repost This

Some MetroPCS Inc. (NYSE: PCS) shareholders are trying to block the operator's merger with T-Mobile US Inc. , 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 (NYSE: DT) -- 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.

For more


— Dan Jones, Site Editor, Light Reading Mobile

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
krishanguru143
50%
50%
krishanguru143,
User Rank: Light Beer
12/5/2012 | 5:18:58 PM
re: MetroPCS Investors Try to Block T-Mobile Deal




What is it with lawsuits?  The fact is, if the majority of the shareholders approve the deal, that hurdle is cleared.  A lawsuit will get them nowhere nor more money.  The court also won’t block the deal as it is out of the courts hands.  First, I have yet to hear that the shareholders have actually voted for or against the deal and second, if the majority did approve it, what could the court do anyway?  At best, the lawsuit is premature and at worst, it is frivolous.

 

Chances are they are just trying to get more money but it could backfire, they spent money trying to get more and get nothing additional at the end of the day but a bill from the attorney.




Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:18:58 PM
re: MetroPCS Investors Try to Block T-Mobile Deal


These kinds of lawsuits have become routine and have gotten quite annoying.


I don't think they really start with shareholders. What happens is a legal firm zooms in on a deal, finds a shareholder (not a big one) and initiates a suit. It has nothing to do with the shareholder vote; the hope is to get a settlement.


That's my impression, anyway.

krishanguru143
50%
50%
krishanguru143,
User Rank: Light Beer
12/5/2012 | 5:18:57 PM
re: MetroPCS Investors Try to Block T-Mobile Deal




So we’re sort of on the same page.  I truly think they are going to be high and dry at the end of the day though.  With the shareholders not even approving the deal yet, there is nothing to block in the eyes of the court.  The deal still needs to get regulatory approval as well.  The earliest a lawsuit could be filed by the shareholders would be after an approval by the shareholders, but even then, the court really couldn’t block the deal.  As long as the majority approved the deal, then the few that don’t like it have no grounds for a lawsuit.




krishanguru143
50%
50%
krishanguru143,
User Rank: Light Beer
12/5/2012 | 5:18:55 PM
re: MetroPCS Investors Try to Block T-Mobile Deal




And that is a risky move as the court could easily dismiss the lawsuit as it is premature.   The court could also grant reclamation of legal fees from the investors listed.




Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:18:55 PM
re: MetroPCS Investors Try to Block T-Mobile Deal


I don't think the idea is to win the suit or to even bring it to court. The idea is to irritate the company into paying a settlement immediately, because it'll be cheaper and faster.

Flash Poll
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
LRTV Huawei Video Resource Center
Analysts' Impressions of Huawei SoftCOM at ONS 2014

4|1|14   |   1:11   |   (0) comments


After visiting the Huawei booth at ONS, Lee Doyle of Doyle Research gives his appraisal of Huawei's SoftCOM solution.
Hot Topics
BlackBerry Invests in Healthcare IT Startup
Sarah Reedy, Senior Editor, 4/15/2014
Volvo: AT&T HSPA+ Can Drive My Car
Sarah Reedy, Senior Editor, 4/16/2014
WhatsApp Threatens Carrier VoLTE
Sarah Reedy, Senior Editor, 4/18/2014
Mobile Apps Susceptible to Heartbleed, Too
Sarah Reedy, Senior Editor, 4/14/2014
Report: NFV/SDN Standards 'Myopic' on Service Management
Carol Wilson, Editor-at-large, 4/16/2014
Like Us on Facebook
Twitter Feed