In light of T-Mobile’s proposed merger with MetroPCS, two separate shareholder advisory firms have opposed the deal, leading P. Schoenfeld Asset Management to speak out against the deal.
P. Schoenfeld Asset Management claimed in a statement:
Two of the most highly respected corporate governance advisory firms have now come out against the merger… It is time for PCS management to re-examine the terms of the proposed transaction and other alternatives available to the company, such as remaining as a stand-alone business.”
The two groups, Institutional Shareholder Services and Glass Lewis & Co argued that Metro was not getting the best deal, despite the fact that another of the big 3 firms, Egan-Jones Proxy services gave its backing to the deal on the same day.
Analyst Jonathan Chaplin now says that Deutsche Telekom must improve the deal for Metro or risk losing the deal, however Metro’s board is continuing to highlight the benefits a merger would bring to investors.
Metro will have very few options looking forward should the deal with T-Mobile fall through, with no other competing bids on the horizon, its possible that Metro could go it alone, however the company’s board does not agree that this is the best route.
Stay tuned for more updates in regards to this deal.