MetroPCS Shareholders: Stop This Madness!
The plaintiffs argue that the merger deal in place is “cheating shareholders” and would unfairly benefit MetroPCS’s executive board and management, whom the plaintiffs claim arranged the deal without shareholder input or interest in mind.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
The lawsuit states “MetroPCS’s officers and directors will receive millions of dollars in special payments – not being made to ordinary shareholders,” and that the worth of MetroPCS has been “drastically undervalued.” Under the deal’s terms, MetroPCS would declare a 1-for-2 reverse stock split and pay $1.5 billion in cash to its shareholders, or $4.09 per share.
The concerned shareholders believe the company’s executives rigged the deal to ensure Deutsche Telekom would be the only serious bidder and are seeking an injunction that would halt the merger, as well as relief for other claims including abuse of control, gross mismanagement, and corporate waste.