Things seemed to be going rather well in terms of the T-Mobile and MetroPCS merger. This all began as rumor back in October of last year and as of today we have seen approval after approval. In fact, the merger has been granted approval from the Department of Justice, the FCC and the Committee on Foreign Investment. Basically, that means they have received all the necessary regulatory approvals.
We have also seen a statement from the MetroPCS board urging shareholders to vote for the approval. That statement reminded shareholders that if the merger was denied, there would be “no assurance that MetroPCS will be able to deliver the same or better stockholder value.” Putting the approvals and support to the side though, it looks like at least one group is not supporting the merger.
That group is Institutional Shareholder Services (ISS) and they have recently issued a statement of their own. The ISS statement asks that MetroPCS shareholders “vote AGAINST the proposed transaction between PCS and T-Mobile USA.” Furthermore, P. Schoenfeld Asset Management LP (PSAM) has also chimed in saying how they “are extremely pleased that ISS recognizes the Proposed Transaction between MetroPCS and T-Mobile is not in the best interests of PCS shareholders.”
Of course, as one would likely expect, MetroPCS has responded back with an updated statement of their own. MetroPCS has said they are disappointed in the ISS report and that they believe the “report contains material flaws and reaches the wrong conclusion.” Aside from taking that shot at ISS, MetroPCS also reminded shareholders that they could be missing out on the “compelling benefits” that will come as a result of a merger.[via Wall Street Journal]