MetroPCS shares up as T-Mobile deal is criticized
NEW YORK (AP) -- Investors are betting that T-Mobile USA will have to sweeten its proposal to merge with smaller cellphone carrier MetroPCS Communications Inc. after an influential shareholder advisory firm came out against the deal.
Shares of Dallas-based MetroPCS, the country's fifth-largest cellphone company, rose Thursday after the report from Institutional Shareholder Services recommended that shareholders vote against the deal when they meet on April 12.
Under the deal, T-Mobile USA's parent company, Deutsche Telekom AG of Germany, will hold a 74 percent stake in the combined company, while MetroPCS shareholders will own the remainder and receive a special dividend of $1.5 billion.
MetroPCS says the deal offers "compelling benefits," and another shareholder advisory firm, Egan Jones, supports it.