Some disgruntled MetroPCS (NYSE:PCS) shareholders have filed a new lawsuit in Dallas Texas alleging that the merger between Metro PCS and T-Mobile (DTEGY.PK) is cheating shareholders as it is drastically undervalued. According to the complaint, “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 [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.” It may be noted that Japanese mobile company SoftBank (SFTBF.PK) recently acquired US telecom company Sprint, which was reportedly interested in making a bid for Metro PCS.
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According to the FDA, Avon Products (NYSE:AVP) has been served with a warning letter regarding marketing violations on a number of its products. In the opinion of the FDA, Avon’s marketing allegedly bent the rules by over-emphasising the effect of the products on the user’s body.
According to a report in Reuters, LDK Solar (NYSE:LDK) announced that it would repay short-term commercial paper of 400 million yuan on time when it becomes due. The announcement allays fears that the company would be responsible for the first ever Chinese default on domestic paper.