T-Mobile/PCS Mobile Merger Faces Lawsuit

PCS Mobile shareholders say their company is undervalued in the proposed merger


According to a brand new lawsuit filed in Dallas, Texas, the merger between T-Mobile USA and MetroPCS is "cheating shareholders" through a "drastically undervalued" merger. Under the agreed upon terms of the deal, MetroPCS declares a 1-for-2 reverse stock split and makes a $1.5 billion cash payment to its shareholders, or $4.09 a share. The company will then issue 74 percent of the remaining common stock to Deutsche Telekom and the plaintiff shareholders will own the remaining 26 percent of the newly combined company, valuing those shares at $12.48 per share.