On October 3, 2012, Deutsche Telekom and MetroPCS Communications, Inc. announced that they have signed an agreement to combine T-Mobile USA and MetroPCS Communications, Inc.
However, the plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:PCS investors arising out of the attempt to sell MetroPCS Communications, Inc. too cheaply via an unfair process.
Investors who purchased shares of the MetroPCS Communications Inc (NYSE:PCS) prior to October 3, 2012, and currently hold any of those NYSE:PCS shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Under the terms of the agreement, MetroPCS will declare a 1 for 2 reverse stock split, pay $1.5 billion to its shareholders (a value of approximately $4.09 per share prior to the reverse split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’s common stock on a pro forma basis.
However, the plaintiff alleges that the defendants breached their fiduciary duty to investors by agreeing to a deal that trades the company's excellent long-term prospects for a drastically undervalued price. In fact, MetroPCS Communications’
Furthermore, so the plaintiff, the process is also unfair to NYSE:PCS stockholders as the defendants agreed to terms in proposed transaction that favor T-Mobile USA to the detriment of NYSE:PCS stockholders.
The plaintiff says the proposed transaction is entirely driven by the board of directors and company management, who together control almost $16 of NYSE:PCS outstanding stock.
Certain MetroPCS Communications’
In addition, so the plaintiff, the proposed transaction was designed to ensure the sale of MetroPCS Communications to just one buyer, T-Mobile USA, by agreeing to provision, such as a no solicitation, matchin rights and $150 million termination fee provision, that prevented and prevent MetroPCS Communications from communicating or providing confidential information to other bidders except under extremely limited circumstances.
Those who are current investors in MetroPCS Communications Inc (NYSE:PCS) and purchased their MetroPCS Communications Inc shares prior to the announcement, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.