Report Tells MetroPCS Investors to Shoot Down T-Mobile Deal
The Institutional Shareholder Services, a company that helps companies better manage their large investments, today published a report suggesting that MetroPCS shareholders vote against T-Mobile's proposed acquisition of the smaller company. The report agrees with the position held by P. Schoenfeld Asset Management, which believes MetroPCS shareholders can get a better deal from another company. "Absent merging with T-Mobile, PCS will have enough cash on its balance sheet to dedicate to new spectrum and could continue operating as a stand-alone company," said ISS in its report. "It may well, as many commentators have suggested, have additional M&A opportunities in the offing, given its attractive assets. In light of the negative market response to this transaction ... and the potential for PCS to continue to thrive as a stand-alone company, shareholders should vote AGAINST this transaction," concluded ISS. Schoenfeld has been lobbying against the T-Mobile deal from the beginning, and is supported by other investors. The deal has been given full clearance by U.S. government agencies, and now hinges on a MetroPCS shareholder vote, to be held April 12. Shoenfeld and ISS are recommending that shareholders vote the transaction down. Earlier this week, T-Mobile USA CEO John Legere expressed optimism that the deal will proceed, despite, what he called, the interference from "greedy hedgefund managers."