MetroPCS Moves Forward With T-Mobile Deal, Schedules Shareholder Vote for March
MetroPCS filed papers Tuesday to close its deal to merge with T-Mobile USA, scheduling a March 28 shareholder vote to approve the purchase.
In a letter to its stock owners, MetroPCS urged shareholders to cast a yellow ballot in favor of the deal, and ignore the white “no” ballots being solicited by a dissident shareholder.
“After a multi-year, thorough review of MetroPCS’ options, with the assistance of independent financial and legal advisors, the MetroPCS board determined that this proposed combination is the best strategic alternative for our stockholders,” the company said in its letter.
MetroPCS shareholders will receive an aggregate of $1.5 billion in cash ($4.06 per share), along with a 26 percent stake in the combined company.
T-Mobile has expressed confidence it can make the deal pay off, even allowing for the fact that the two companies today use different network technologies.
MetroPCS also announced its fourth-quarter results Tuesday, posting a 65 percent drop in net income, along with a loss for the year of more than 450,000 subscribers.