Light Reading
Two MetroPCS shareholder suits in Dallas claim the T-Mobile deal undervalues the fifth-largest operator in the US

MetroPCS Investors Try to Block T-Mobile Deal

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

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.

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive