Deutsche Telekom Defends MetroPCS Deal Against Shareholder Complaints

metrocarly

As small but influential groups of shareholders openly discuss their discontent with the MetroPCS board and the decision to merge with T-Mobile USA, their parent company defends the deal. Deutsche Telekom’s defense comes as P. Schoenfeld Asset Management disclosed a letter sent to the MetroPCS board at the end of January calling the deal with T-Mobile “unsustainable” and recommending the company remain a stand-alone entity for the time being.

For its part, Deutsche Telekom says it “remains committed” to the deal and will “enforce its right under the definitive agreement with MetroPCS.”

“This combination will substantially benefit the shareholders and customers of both companies by creating a new company that will be the leading wireless value carrier with expanded scale, spectrum and financial resources to compete across the entire U.S. market,” DT said in a statement.

Under the deal, MetroPCS and T-Mobile will set up as a reverse merger with Deutsche Telekom owning 74 percent of the newly public company. MetroPCS will set up a 1-2 reverse stock split and pay $1.5 billion in cash to shareholders. Schoenfeld, which owns around 2 percent of MetroPCS, explained that they believe Metro shareholders should receive 37 percent of the new company and not 26 precent.

The deal is expected to close before the middle of the year, if not sooner as T-Mobile execs have suggested.

Fierce Wireless

 

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  • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

    DT is right though. I really want this merger to suceed because it’ll be great for America a new public cell phone company which we can buy stocks of.

    • galaxymaniac

      you can buy stocks of ATT right now… or Verizon or Sprint for that matter… they are all publicly traded companies

      • g2a5b0e

        I’m pretty sure he knows that. That’s why he said ‘new’.

        • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

          Thank you !

      • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

        Ive owned stock of Metro PCS. But i sold when the stock peaked. But I’ll pass on att sprint and Verizon. Sprint stock is just about the same as Metro lol. U.S. Cellular is interesting to me

  • GS3_fan

    group hug!

    • kevev

      I love that picture.

  • pamm

    MetroPCS is being greedy. They will not survive without a major carrier

    • http://twitter.com/_spainter S

      Correction: Stockholders are being greedy

      • thinmanXXS

        Rich people are 99% of the time greedy

  • Marc OKelly

    I hope this goes through, I want 20mhz x 20mhz LTE

  • Stars44

    now everyone wants to merge with MetroPCS? Several days ago in the article about att’s ceo everyone was glad att and tmobile didn’t merge?!

    • TechHog

      Completely different situation. AT&T only wanted to buy T-Mobile so they’d become the only major GSM carrier in the country.

      • Stars44

        so most tmobile customers are worried about who is merging with tmobile? I, as a tmobile customer am worried in first place in call&data quality, coverage which is not perfect. In this case, its better so that bigger and more powerful company buys tmobile because the latter showed they can’t develop fast. What will give us as customers so called MetroPieceOfSh*t?

        • TechHog

          If you like AT&T that much, doesn’t make more sense for you to just switch? I mean, if the buyout had gone through, you would have become an AT&T customer anyway. If that’s what you want you have that choice. Nothing is stopping you.

        • Stars44

          I’m not saying I like att, I wanted as a tmobile customer to get better coverage, quality, more phones availability. I’m with tmobile for about 10 years and I have a contract for another year and I really wanted tmobile to get better without switching to anyone else. But unfortunately tmobile management are dumb asses with high school diplomas, they made too many mistakes in recent 3-4 years. That’s why they’re loosing customers all the time. And what we got? Stupid 3G frequences, I couldn’t get flagship models, because tmobile wouldn’t support it and I would end up with a fancy $700 brick with Edge internet. Then, everyone, but them signed up with apple. Now, 2 years after competitors they’re barely starting rolling out LTE.

          Again, I’m not saying I like att, verizon, spring or anyone else! I just really wanted tmobile to become better, but they failed and unfortunately I don’t see how they gonna get out this situation.

        • TechHog

          What you’re not understanding it that the AT&T thing wasn’t a merger; it was a buyout. AT&T just wanted T-Mobile’s spectrum. Really, if the deal had gone through, it would have just been a forced switch to AT&T for you and nothing more. T-Mobile would not have become better; they would have just vanished.

        • Stars44

          Who cares about that, merging, not merging? I would automatically become customer of one of the largest companies, with great coverage and call quality. If that means tmobile to vanish, I don’t care, they’ve done nothing good to keep the customers.
          And I highly doubt the prices would have gone up, right now att and verizon are better and are asking reasonable money for what they offer (about $20-30 more monthly for same service, I compared my needs: 2 lines+internet)

        • TechHog

          Then just switch! Stop being so damn selfish. If everyone on T-Mobile felt the way that you do, they wouldn’t still be on T-Mobile. Not everyone wants to spend $240-320 extra a year just for more coverage. Also, of course AT&T would have used it as an excuse to raise prices! Between the cost of the deal and the GSM monopoly, you’re completely delusional to believe that they wouldn’t have taken the opportunity. If AT&T cared enough about customers to not raise prices with such a great opportunity to do so, the prices wouldn’t be so high in the first place. You do realize that all unlocked phones from other parts of the world are GSM, right? A GSM monopoly is a much bigger deal than you seem to realize.

          Stop whining about how T-Mobile doesn’t suit your personal needs and switch. They only thing stopping you is your own stupidity and laziness. You don’t like T-Mobile, you don’t care about T-Mobile, and T-Mobile doesn’t have good coverage in your area. You have no reason to stick with them. There’s literally no logic to be found in your comments.

        • Stars44

          Im stupid and lazy? Who ARE you to tell me that, you little sucker??? Your mommy didnt teach you good manners? Or you had 2 daddys instead?

          I’d switch right now, if I hadn’t pay $800 cancellation fees.

        • TechHog

          You’re a homophobe too? Wow.

        • Bajamin

          If the extra money you will be paying ATT or Verizon doesn’t bother you Mr. Money Bags then why does the cancellation fee? If it’s that bad why did you re-sign the contract? If it’s a new contract why didn’t you leave during the 14 days? Why not sell your phones and get the money to cover the cancellation fees? You have made 0 valid points and are just bitching to bitch.

        • http://twitter.com/_spainter S

          Whoa, the two daddies thing is highly inappropriate. If you think a comment like that is wise it’s you who was raised poorly.

          Stop complaining and do something about your “troubles”. Also, take high school economics again – monopoly = higher prices. Every single time.

        • Stars44

          Whoa, I didn’t know that an S can talk!

          Yeah, and you don’t complain, eat shit tmobile gives you, in the end you’re an S! And my troubles I’m gonna solve, don’t worry.

        • sdtbmx

          “management are dumb asses, with high school diplomas”….its losing customers…not loosing.

          Unfortunately customers like you will continue to cry instead of actually switching…what competitors have had LTE for 2 years?

        • Stars44

          Who’s crying? I’m not crying, I’m saying t-mo mgmt are idiots.

          I said competitors started to roll out LTE 2 years ago, so tmobile is 2 years behind!

          “its losing customers…not loosing.” Oh thanks, spelling bee.

        • Bajamin

          Who cares about LTE? T-Mobiles HSPA+ was the fastest while everyone was rolling out LTE, and was generally the second fastest even after everyone was up and running. T-mobile is only pushing it so they an carry the iphone. Couldn’t get flagship models? There were plenty, the phones you wanted them to carry they didn’t because of cost to purchase vs. projected sales. It’s called business. I also don’t think you understand what this merger is about and how it works . I also don’t think you quite grasped the ATT merger either and how your monthly rate would have doubled.

        • Stars44

          the fastest but where is it? Kansas, Fort Worth? I highly doubt the majority of customers are there!! First thing they should roll it out in NY, LA and Chicaco and so on.
          Another thing, it doesn’t work as it supposed to, I’m not even saying about speeds. The QUALITY is awful!! How do you like, 4 bars, phone shows 4G, but you can’t download anything??? And that happens 20-50% of the day.
          And you probably don’t know what is flagship if you’re saying they had. I’m not even saying they HAD TO SELL THEM, all I need is so that they’re supported by t-mobile, but with their stupid frequences you can use Edge connectivity only.

    • Nolan

      This would be a good thing for us. More spectrum = more coverage. It would be far easier for them to buy existing LTE equipment than it would be for them to have to build out that section of the network from scratch.

      • Stars44

        Thats true, hopefully they do it fast!

  • Oliver Jackson

    The merger will go through as planned.Look at the big picture.And yes you can buy stock shares from the others as well as manufacturers.. Move forward everyone

  • philly8

    hes just playing sales tactics to get another 10 percent and see where they settle at. The problem is that he only owns 2 percent lol waht a joke.

  • Davidisanelf

    Get those Bollywood rejects off our freakin’ woman!