Tech

MobilePCS Merging With T-Mobile

By Matthew Klickstein , Feb 26, 2013 01:11 PM EST
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The merger between MetroPCS and T-Mobile will now take place, as per a filing completed by Metro PCS on Tuesday, Feb. 26 and pending its shareholders' vote on March 28 to approve the deal.

MetroPCS sees the deal as propitious enough to write a letter to its stockholders suggesting they ignore the white "no" ballots being distributed by a dissident member of their phalanx. MetroPCS wants all shareholders to cast a yellow ballot instead, which would seal the deal and allow the two telecommunication giants to become one.

"The MetroPCS board of directors has unanimously concluded that the proposed combination with T-Mobile is in the best interest of MetroPCS and its stockholders," writes the company in its letter issued along with proxy statement materials that had been filed with the Securities and Exchange Commission and "other relevant materials."

"After a multi-year thorough review of MetroPCS' options," the letter continues, "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 immediate cash payment you will receive and the significant ownership interest you will hold in the combined company represent a substantial premium to MetroPCS' current stock price, and your ownership in the combined company will allow you to participate in the potential synergies and value created by this combination."

This combination, Metro PCS hopes, will create "the leading value wireless carrier in the United States, which will deliver an outstanding customer experience with a broad selection of affordable products and services." 

"The combined company will be well-positioned from a competitive standpoint with significant spectrum holdings, deep nationwide network coverage and considerable network capacity."

The amount of money that shareholders will receive runs to the aggregate tune of $1.5 billion ($4.06 per share) and they will gain a 26 percent stake in the combined company. Despite the fact that the two companies use different networks, All Things D points out that T-Mobile remains confident about the merger as well.

However, MetroPCS' fourth-quarter results released on Tuesday showed a 65 percent drop in net income and a loss of subscribers to the tune of 465,000.

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