According to a report in Opposing Views, MetroPCS shareholders are not happy with the proposed terms of the merger with T-Mobile and have a filed a lawsuit to block it. The shareholders call the deal “drastically undervalued” and say MetroPCS is “cheating shareholders”, while at the same time padding the financial interests of senior management.
The lawsuit claims the $12.48 value placed on the shares of the resulting company is far too low, especially when MetroPCS’ stock traded as high as $18 in May 2011. The plaintiffs also claim that “[Metro]PCS’ officers and directors will receive millions of dollars in special payments that are not being made to ordinary shareholders.” Management will also allegedly receive additional millions in change-of-control payments.
Shareholders seek an injunction to stop the merger and ask for declaratory relief due to breach of fiduciary duty, abuse of control, gross mismanagement, unjust enrichment and corporate waste.
[Via Opposing Views and TmoNews]