NEW YORK Feb 25 MetroPCS Communications Inc on Monday set a special shareholders meeting for March 28 to vote on its proposed merger with T-Mobile USA, which some activist investors are looking to block.
MetroPCS agreed on Oct. 3 to merge with Deutsche Telekom AG's U.S. business, but some shareholders have complained the deal does not value MetroPCS highly enough.
P. Schoenfeld Asset Management LP, which holds about 7.5 million MetroPCS shares, said on Feb. 7 that it intends to vote against the deal due to the valuation and the debt levels that come with it. Since then, it has been looking for support from other investors.
A week later, Paulson & Co, which holds 8.7 percent of MetroPCS shares, criticized the deal and said "it may be more prudent for PCS to remain independent and explore other higher value alternatives."
While Paulson said the firm had not yet made a final decision on how it would vote, it said P. Schoenfeld's arguments made "a lot of sense."
MetroPCS shares were unchanged at $9.95 on the New York Stock Exchange on Monday. The stock has risen since investors started complaining publicly but was still below $11.52, the level on Oct. 1, the day before it emerged that MetroPCS was in talks with T-Mobile USA.