MetroPCS shareholders to vote on T-Mobile merger on March 28 [UPDATED]Alex Wagner - Deputy Managing Editor, News Desk
It looks like March 28 will be a big day for MetroPCS and T-Mobile, as it's been revealed that that's the date that MetroPCS will hold a shareholder vote on the proposed merger of the two carriers. MetroPCS recently sent out a letter to its shareholders to alert them to the meeting at which the vote will take place. In addition, Metro urged its shareholders to vote in favor of the T-Mobile deal, pointing out that the MetroPCS board of directors has already unanimously approved of the merger and that, after a multi-year review, this is the best strategic alternative for its shareholders. The shareholder meeting at which this vote will occur is scheduled to take place in Richardson, Texas.
The proposed MetroPCS-T-Mobile merger was originally announced in early October 2012. MetroPCS has been supportive of the deal since then, saying that it'll create the "value leader" in the wireless industry and that it'll provide MetroPCS customers with a nationwide LTE network as well as a wider device selection, which will come with the carrier's switch from CDMA to GSM network technology. Not everyone is happy with the merger, though, as some MetroPCS shareholders have said that it's "drastically undervalued" and that Metro's board is simply serving its own interests by agreeing to the deal.
As part of the merger, MetroPCS will gain a 26 percent stake in the combined T-Metro entity as well as $1.5 billion in cash, which works out to around $4.06 per share. It's worth noting that even if MetroPCS's shareholders do vote in favor of the deal, it must still be given the regulatory stamp of approval from the FCC and others. The entire deal is expected to close in the first half of 2013.
UPDATE: MetroPCS has announced that it has moved its shareholder meeting for the T-Mobile vote to April 12.