“Paulson & Co., the largest shareholder ofMetroPCS Communications, said it will vote against the wireless service provider’s proposed merger with T-Mobile USA, a unit of Deutsche Telekom, unless the companies sweeten the deal.
Paulson, owner of 36.3 million shares or 9.9 percent of MetroPCS stock, is following in the footsteps of another shareholder, P. Schoenfeld Asset Management (PSAM). PSAM, whose holdings represented 1.66 percent of MetroPCS shares at year end, is leading a proxy battle against the merger.
Paulson said on Thursday that, while the deal has strategic merits, the merged company would have “too much debt at too high an interest rate to be competitive” and it complained about the exchange ratio for MetroPCS shareholders….”
If you enjoy the content at iBankCoin, please follow us on Twitter