MetroPCS Board Pushes Back Vote On T-Mobile USA Merger

metropcs

With a special announcement on their investor website, MetroPCS announced that it would move the special meeting of their stockholders to vote on the “proposed combination of MetroPCS with T-Mobile USA, Inc.” According to the statement, the date of the special meeting was changed to “correct an administrative error.” In the same statement, MetroPCS states they now expect the deal with T-Mobile to be completed shortly after the meeting.

MetroPCS hopes the pushed back date will allow “additional” time for stockholders to check the company’s financial position and consider the “compelling benefits of the proposed combination with T-Mobile to create the leading value carrier in the United States.” The timing of the move to push back the meeting seems highly coincidental amid news that the largest stockholder in MetroPCS would vote against the merger.

The special meeting of stockholders will now be held on April 12th.

MetroPCS Investors Page

 

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  • cielomoreno127

    Great, now let’s move forward towards success!

  • rfgenerator

    This reverse buyout appears to be edging it’s way to collapse, perhaps rightfully so. The “new” company would be VERY debt heavy. Hope T-Mobile can continue to make a go of it on it’s own and not be treated too much like the “red headed step child” of the parent company in Germany.

    • BigMixxx

      debt heavy would actually be good. it would really steer the other 3 companies away.

      • rfgenerator

        I guess it would be sort of a “poison pill”.

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (ニール・ゴンパ)

          Not to mention that it’s actually good that the debt is all held with Deutsche Telekom. It can choose to forgive debt based on T-Mobile’s performance in the market. Plus, if T-Mobile surpasses Sprint and becomes number 3, then the value of the debt notes would fall, reducing the amount of money T-Mobile has to pay back.

  • kevev

    Bad move playing chicken with T-Mobile.

  • Todd

    This will still go through. There may be a little negotiating on the finer points, like the debt, and DT may end up paying more, but the overall deal will go through.

  • BigMixxx

    scary that one dude has enough power to change a vote. But Paulson hasn’t been on a good roll as a late.

    He has to be in a position where he wants to hold the stock of the new company for a while. He is losing a ton in value and will not be that 9% holder in the new company. reducing that debt may offer him that ability with this new company.

    Slick….but that’s what big money will get you….

    • wazmo

      Paulson is a hedgie-which means holding TMO stock is the last thing he wants to do. If he can succeed in getting TMO US’s debt down then he’ll be placated-but I doubt he’d be willing to mount a legal campaign to put the bade to the deal.

  • http://www.youtube.com/#/mrjlwilliams J. Williams

    Just let it go T-Mobile, DAMN! Stand on your own for a change, you can do it. Bring several high end phones, no contract, and great plans. You will win the people over. OH YEAH, the most important thing of all. NETWORK, make sure it’s solid.

    • bleeew

      They need the spectrum. They are low on spectrum in some places, and plus they may gain more users, and will help coverage a bit.

      • squiggleslash

        Merging with MetroPCS will not help with the spectrum. Past precedent says that the FCC _will_ (it _always_ has in the past) require the combined entity give u[p spectrum. At the same time, the combined company will have to support all the customers it previously did on what, in aggregate, will be less spectrum.

        And with the mix of mobile phone standards (99% MetroPCS is cdmaOne/cdma2000, 99% of T-Mobile is GSM/UMTS), it’s not even as if the two can benefit from sharing where one network is underutilized and the other is at capacity.

        • SouthernBlackNerd

          The merger of ATT/Cingular and Verizon/Alltel was completely different than Metro/Tmobile. Also I do not believe Sprint was required to give up spectrum in their Sprint/Nextel merger.

          Tmobile is going from the 4th place carrier to the 4th place carrier. Verizon and ATT when from 2nd or third to 1st and had way more spectrum than any other carrier. Tmobile still will not have as much spectrum as the big two or even sprint( if the Clearwire deal goes through).

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (ニール・ゴンパ)

          Sprint actually gained a full 20MHz of spectrum nationally by acquiring Nextel. Nextel had ESMR (avg. 10MHz), and G block PCS (10MHz) nationally. Sprint was forced to acquire all of its affiliates (except Shentel) because of non-compete clauses in affiliate contracts, but that’s all.

          Because MetroPCS operates almost entirely in markets where T-Mobile has some spectrum deficiency, divestiture is not likely to be applied to this transaction.

        • squiggleslash

          Sprint and Nextel didn’t have the same kind of spectrum, so yes, they weren’t initially required to give up spectrum. That’s completely different to this case, which is almost exactly like Verizon/Alltel.

          Verizon Alltel, like this merger:
          - Involved a large, top 4, carrier, and a much smaller carrier
          - Involved multiple standards, albeit not to the same extreme. Interestingly, Verizon-Alltel was required to give up all of the spectrum that was being used by the smaller carrier to implement the incompatable network – that is, Alltel’s GSM spectrum went to AT&T. If this precedent were followed (it probably won’t be because the affect would be extreme) almost all MetroPCS’s customers and PCS spectrum would be given to a CDMA carrier like Sprint or Verizon, or one of the smaller regional CDMA operators.

          And while the merger won’t affect T-Mobile’s status as the fourth place provider, it will REMOVE one carrier and boost a “Top 4″ carrier. So in every sense, this is an anti-competitive merger.

          I know it’s not what some of you want to believe. You had no problem understanding the AT&T merger was a bad thing, but only because AT&T is big and horrible. MetroPCS isn’t big, and nobody here knows how horrible it is, but if you think this merger will fix any of the problems T-Mobile has, rather than exacerbate them, with customer service, quality, and coverage, I think you’re letting your optimism get the better of you. Less competition, more customers per MHz of spectrum, more cost cutting. Those are the facts.

        • SouthernBlackNerd

          Sprint/Nextel was never required. not sure where this initially comes from. the deal is long over. Sprint/Nextel was two large nationwide carriers combining.

          Alltel was not that much smaller. they where the fifth largest and had massive amounts of coverage(covering 34 states) and spectrum. I believe they had the largest coverage area.

          Alltel did not have a GSM network, and their is no such thing as GSM spectrum. No spectrum is attached to a certain technology. You can broadcast what ever cellular technology you like on spectrum designated for mobile use. ATT bought the areas because it did not want Sprint to gain coverage. It told all Alltel customers in that area that they had 60 days to convert to 3g ATT devices or lose 3G service.

          They had to divest, because they had a lot of overlap in the 850 band and coverage, which we all know is the beachfront property spectrum that allows ATT/Verizon to cover vast areas with few towers and provide stronger signal.

          Buyouts and Mergers always remove one carrier. It is in the definition. I don’t buy the BS that it is anti competitive. If anything, too many players in the wireless market is anti-competitive. Think about if we did not have these regional and local carriers hording spectrumfor tens of thousands of customers. Tmobile could actually have gotten all of the 700Mhz A block, which would allow them to atleast compete on a level playing field with the Big two, but currently they are stuck using PCS and AWS, while ATT and Verizon use 700Mhz.

        • squiggleslash

          You appear to have misunderstood virtually everything I wrote:

          - I didn’t say Sprint/Nextel were required to give up spectrum. I explained WHY they WEREN’T, namely that they had entirely different types of spectrum.
          - Alltel was a regional network, much smaller than Verizon
          - Alltel did, indeed, have a GSM network (the result of years of mergers that included some GSM carriers.) They didn’t directly sell GSM services, using it to provide roaming for other carriers, and for legacy support for older GSM customers.
          - “GSM spectrum” in this context means “Spectrum being used for GSM”. Verizon did, in the end, have to divest this spectrum.

          As far as the rest of your comments go, regarding mergers, I do suggest you read them yourself and ask yourself if they make sense. They don’t to me.

        • Mike

          You clearly have no idea what you are talking about. Once the merger is complete, the new T-Mobile will have alot more spectrum in the 1900 PCS band and the 1700 AWS Band. This will allow for blazing fast LTE by use of 2×20 in most markets. CDMA will be phased out rather quickly from Metro because of the small footprint. It is out out there that the new company may look to acquire LEAP Wireless. This to would put them in a great position with spectrum in the respective bands. As far as Metro PCS, the need T-Mobile, anyone expierenced their LTE? Its horrid. HSPA + 42 is MUCH faster. Plus, Metro’s stock isnt worth crud and they have no money to become a threat or roll out a nice network.

        • squiggleslash

          1. As I said above, the combined entity WILL be required to divest spectrum. There has never been a merger where two entities with the same type of spectrum haven’t been required to give up some of it.

          2. MetroPCS is not going to “quickly” phase out CDMA. It will take five or more years to get to the point this can be done economically. Phasing out CDMA means replacing EVERY SINGLE PHONE that current MetroPCS customers have.
          3. Buying LEAP Wireless isn’t on the agenda, isn’t a sure thing, and will entrench the current problems with the merger concerning multiple standards.
          4. MetroPCS’s LTE being bad means what in this context? Given LTE is supposedly one of the reasons for the merger, perhaps you can explain why Metro’s LTE sucking and T-Mobile’s HSPA being awesome is an argument for the merger?

        • Mike

          Again, you have not read all the details. CDMA will be done by 2015. They will start giving offers right away to move participants off off the CDMA network as soon as the deal closes. As far as LTE, T-Mobile doesnt want Metro’s LTE 8 as it will have to be reworked to advanced LTE 10. Its about spectrum. As far as LEAP, there is information ON THIS SITE that suggests T-Mobile will pursue this option after the merger closes. All the information I have posted is from this site and what T-Mobile has stated themselves. And BTW, HSPA + 42 has faster speeds than Metro’s LTE that runs a lousy 5×5 channel.

        • squiggleslash

          - CDMA will not be “done” by 2015. That’s two years from now. The merger hasn’t even gone through yet. You may have read something somewhere making that claim but it’s not going to happen. No carrier on Earth would do that to its customers, especially as the only practical way to achieve it in that time scale is to replace every MetroPCS phone with a GSM equivalent, and that’ll mean an entirely new coverage map with many customers losing service where they expect and need it.
          - The fact you’ve read a rumor suggesting LEAP might get bought by T-Metro doesn’t change a single thing about its likelihood.
          - I wasn’t questioning the notion that MetroPCS might have LTE suckage. What I questioned is why you think that MetroPCS having lousy LTE would in some way bolster the claim that the merger is a great thing.

          The facts are:

          - If I’m wrong about the intended timescale of the CDMA switch, then this is terrible news for both T-Mobile and MetroPCS customers. It’s not an argument for the merger.
          - If I’m wrong about the LEAP merger, and somehow T-Metro is able to immediately get FCC approval and buy LEAP, it’s terrible news for T-Mobile, MetroPCS, and LEAP Wireless customers, as it’ll exacerbate the multiple standards issue.
          - The MetroPCS-has-poor-LTE argument is terrible news for T-Mobile and MetroPCS customers. It’s not an argument for the merger.

          Your arguments are dubious, but even if they were right, they’d be arguments against the merger, not for it.

        • Mike

          I laugh at you. You have no clue what you are talking about. Get a masters degree in commincations, the we can talk. Goodbye!

    • squiggleslash

      Agree. It seems the only serious reason for this proposal (it’s not spectrum, the FCC generally requires merged telcos give up spectrum, and in any case T-Mo has oodles of nationwide AWS) is so that T-Mobile US can be listed on the stock exchange. And quite honestly, there are plenty of companies T-Mobile could buy that would put it on the stock exchange that aren’t competitors.

      T-Mobile merging with MetroPCS means one less option for US mobile phone users. Especially now, with the T-Mobile we have now – whose culture and service appears to have been ruined by the changes they made during the at&t merger, I can’t see the benefit in losing one more of the companies that might have forced T-Mobile into the right direction.

      When I’ve posted this in the past, it’s been generally considered heresy. But there’s a reason why we opposed the T-Mobile/at&t merger, and those reasons are no less valid with the MetroPCS merger. This is not about “cheering your team” – T-Metro is not T-Mobile, just as AT&T-Mobile would not have been.

  • Whitney

    screw you metro pcs

    • NYCTheBronx

      Lol. Can’t wait for them to disappear too. T-Mobile all the way!

      • galaxymaniac

        disappear? unlike Tmobile, they are actually a profitable company

        • JBrowne1012

          T-mobile is a profitable company

        • Spooln3

          lol, thats comedy, clearly you haven’t looked at Metro’s stock over the last 12 months.

        • Spooln3

          O, and incase you didn know, T-Mo is still a very profitable company, they just aren’t as profitable as the other big two. I don’t count sprint cause that ship is sinking fast, even with the softbank buyout.

  • Christopher_McG

    MetroPCS today, CricKet tomorrow. The synergies in markets with both carriers are too good to pass up. Especially Las Vegas. I know of a few MetroPCS towers that serve certain areas better than T-Mobile and vice-versa, along with their extensive DAS network. And CricKet is just so irrelevant.

  • tmo_employee

    bad news for employees with our hours being cut and our raises on hold until the merger is done

    • http://weevil.myopenid.com Weevil

      Bummer. Sorry to hear that. Hope moves forward. I love TMO customer service.

  • guest911

    Suck it up, Sprint

  • Richard Yarrell

    This merger will take place and former Metropcs customers can look forward to a great future with great handsets.

  • James

    Metro pcs!!! You have no fucking future without t-mobile!! Lets face it , your not nationwide, your fastest 4G LTE speeds are 2mps, and you don’t have any good phones (except the gs3), and your loosing costumes and stock prices!!!!

    • MetroPcs

      T-mobile!!!! You have no fucking future without MetroPcs!! Lets face it, your the worst of the “nationwide” carriers, you don’t even have LTE, and you don’t have any good phones (except the gs3) and your loosing customers (and costumes!!) and stock prices!!!!

      • JoDee

        Lol

      • Mike

        HSPA is faster than your LTE at METRO. Hell, it is even fater than Verizions LTE in 11 markets. Get your facts straight.

  • superg05

    IF THE MERGER DOESN’T GO THROUGH BECAUSE OF THEM T-MOBILE GET A MILLION DON’T THEY?

    • Mike

      Not quite, but close to it. The deal WILL close, so it really doesnt matter.

  • M42

    Personally, I hope the merger doesn’t go through. T-Mobile needs to face up to why its customers flee in droves when their contracts are up instead of looking for smaller companies to absorb so as to pad their customer base and fool everybody into believing they’ve had some growth. And the number one reason customers are leaving ….. poor coverage and a network that’s mostly EDGE.

    They should change their signature motto to “T-Mobile – with the nations largest 2G network.”

    Yeah, I’m a little ticked right now. I was driving home from a trip yesterday and the entire trip I was on EDGE. My email wouldn’t pull down and I was unable to use the voice text command feature. I had to wait until I reached my home city and got back on 4G before the phone became useful for anything other than voice. Everybody else has 4G in this same area, yet T-Mobile has said they have no plans to upgrade their ancient SunCom 2G network.

    As soon as I decide on a phone I’m paying my early termination fee and heading to AT&T.

    • Mike

      Have you not read the Challenger Strategy? All 37000 towers will be HSPA 42 by August. 200 million POPS on LTE by end of year. Metro doesnt even have a nationwide network. Their LTE speeds are laughable.

    • voodo

      I think we should take up a collection to pay your ETF so you will leave.

  • Mr Tibs

    I for one hope it doesn’t go through. How do you bye a company like metro & raise prices? This is going to be just as bad as the Sprint/Nextel merger/buyout

    • Mike

      First of all, learn how to use proper grammar. Second, prices are bound to go up sooner or later. Third, this merger is NOTHING like the like the Sprint/Nextel fiasco. You seem to have the IQ of about that of a toilet seat. Have a nice day. :]