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In a letter sent to shareholders, MetroPCS has asked that its shareholders support the proposed merger with T-Mobile USA, according to Forbes and CNET. The company said that the merger is the best available method for the tiny carrier to compete in the market. The letter was sent out in an effort to change the talk after two activist investors claimed they would not vote in support of the merger.
MetroPCS, in the letter to its shareholders, said that it could not guarantee the ability to deliver better value as a wireless company that operates on its own in the market. The company is looking to combine resources and networks with T-Mobile in an effort to compete with Sprint Nextel, Verizon, and AT&T.
Deutsche Telekom owns T-Mobile and it would hold 74 percent of the company in the reverse merger, which was announced back in October. MetroPCS would declare a 1-for-2 reverse split and pay $1.5 billion in cash to the shareholders.
The two activist investors who announced their intent not to back the merger are Paulson & Co., the largest investor for MetroPCS, and P. Schoenfeld Asset Management. Glass Lewis and ISS, two proxy advisers, have also said that they will not support the merger.
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