The opposition to the merger of MetroPCS Communications Inc and Deustche Telekom's T-Mobile USA grows louder, as investor P. Schoenfeld Asset Management LP leading the charge. The activist equity firm is also calling for the resignation of MetroPCS's CEO and one of the members of its Board.
The firm is also urging stockholders to veto the measure, highlighting the provisions of the transaction as well as the included debt to be absorbed through the merger. The deal is tabled for a vote during its April 12 special meeting.
Amongst the issues highlighted was the sales of shares by both Roger Linquist, CEO of MetroPCS and Kevin Landry, board member, just prior to the announcement of the MetroPCS deal with the German telecommunications giant.
PSAM owns about 2.5% of MetroPCS shares and it has called for the resignation of the two officials because of these activities. The deal would have the German firm to own 74% of the shares of the merged company, leaving MetroPCS to undertake a one for two stock split through a share buyback estimated at US$1,5 billion.
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