While the board of executives from both Deutsche Telekom and MetroPCS have given the deal their blessing, we guess there were some shareholders who weren’t too pleased about it. It seems that some of MetroPCS’ shareholders have filed a lawsuit against T-Mobile USA, Deutsche Telekom (T-Mobile USA’s parent company), and MetroPCS for apparently undervaluing the company.
The deal is expected to bump share prices to $12.48, which apparently the shareholders of MetroPCS feel is too low since a stock analyst has recently pegged MetroPCS’ shares to hit $18. The plaintiffs of the lawsuit are also claiming that the deal was made so that only Deutsche Telekom could bid on MetroPCS and essentially blocks other parties from attempting to make a bid of their own.
“The process leading to the proposed acquisition was tainted by conflicts, tilted towards T-Mobile and driven entirely by the board and company management, who together control 15.4 percent of PCS’ outstanding stock and seek liquidity for their illiquid holdings,” the complaints claims.
“[Metro]PCS’ officers and directors will receive millions of dollars in special payments – not being made to ordinary shareholders – for currently unvested stock options, performance units and restricted shares, all of which shall, upon the merger’s closing, become fully vested and exercisable.”
The plaintiffs of the lawsuit are looking to block the acquisition from happening while seeking injunctive and declaratory relief. A date for hearing has yet to be set and it looks like the first complication of the T-Mobile/MetroPCS deal has finally shown up.