A special shareholder meeting of PCS investors is set for April 12, Friday to vote on the proposed merger between T-Mobile US and MetroPCS. Amongst them is Roy Behren, chief executive at Westchester Capital's the Merger Fund.
According to him, "It's been unusually quiet, to be honest with you and I'm rather surprised the defendants haven't appeared yet." This is quite unusual before such a pivotal meeting as none of the representatives of PCS or Deutsche have reached out to convince them to change their tact from reject to accept.
The fund he represents has 12.5 million shares of PCS stock or 3% of PCS common stock outstanding overall. He and others have filed a suit against MetroPCS to block the merger with Deutsche Telekom's T-Mobile USA unit.
The case alleges that there were breaches of fiduciary duty, such as undervaluation of MetroPCS without even reflecting the strong performance of the firm for 2012 as part of the merger.
One of the major issues is the need to cut back on the debt dumped in the deal as this affects the overall rating of the company and thus is a factor in determining overall value.
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