Drama doesn’t just plague the Kardashians, but carriers too and it seems that MetroPCS shareholders aren’t happy over the Deutsche Telekom acquisition. With the acquisition, Deutsche Telekom who happens to be T-Mobile’s German parent, will purchase MetroPCS for $1.5 Billion. While that sounds like a lot of money, apparently it’s not enough.
Shareholders have filed a lawsuit against T-Mobile, Deutsche Telekom and MetroPCS as they believe that $1.5 Billion is a “drastic undervaluation”. These kinds of things happen from time to time. They believe that the new valuation of $12.48 per share is unreasonable and better favors T-Mobile and Deutsche Telekom than MetroPCS itself.
Whether that’s the truth or not, this lawsuit is sure to slow things down and grind the acquisition to a hault which has yet to be approved. Shareholders may be onto something here and have a good point. The reality is that MetroPCS was once value at upwards of $10 Billion and has grown considerably in the last few years.
Although they don’t get as much attention as big names such as AT&T, Verizon, and Sprint, they’ve carved a nice niche for themselves and selling themselves to the German company could prove beneficial for both T-Mobile and MetroPCS. Shareholders took things a step further and basically make it so the carrier can’t entertain other offers which means that Sprint is completely out of the picture.
For now, it’s back to the drawing board and trying to get a higher price out of Deutsche Telekom. If the shareholders don’t get their way and an agreement can’t be reached, it could spell trouble for the deal altogether.