Sprint acquired by SmartBank, T-Mobile/MetroPCS merger met with shareholder lawsuit

Sprint T Mobile and MetroPCS Sprint acquired by SmartBank, T Mobile/MetroPCS merger met with shareholder lawsuit

The third, fourth, and fifth largest wireless carriers in the United States have undergone some major changes over the last few weeks. Sprint has announced that it is being acquired by SoftBank, while T-Mobile USA and MetroPCS’ plan to merge the two companies have been met with lawsuits from shareholders.

SoftBank’s acquisition of Sprint cost the company $20.1 billion, giving it a 70% controlling share of the company. The buyout has been approved by Sprint’s shareholders and board of the directors, so it is expected to be completed within six months barring any holdups in regulatory approval. Sprint fans will be pleased to know that the CEO, board of directors, and headquarters will remain as-is. In essence, this deal was essentially made to “give Sprint a much-needed cash infusion.”

The T-Mobile USA/MetroPCS merger from a few weeks ago, on the other hand, hasn’t been received as favorably by shareholders. MetroPCS’s shareholders claim that the payments of $4.09 per share “drastically undervalues” the company and “cheats shareholders.” Worse, they’re saying that MetroPCS’ board of directors is “conflicted and serving its own financial interests.” As a result, a lawsuit has been filed against MetroPCS, its board of directors, T-Mobile USA, and its parent company Deutsche Telekom.

[Pocketables via Sprint | CNET via TmoNews]

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>