MetroPCS T-Mobile

According to a proxy filing this week, MetroPCS shareholders will vote on the proposed merger with T-Mobile on March 28.

It was announced back in Oct. of last year that MetroPCS and T-Mobile were exploring the potential for a merger. While the deal needs to clear the industry regulators – and it is expected to do so – it appears that MetroPCS shareholders will be voting on the merger on March 28.

Should the deal be accepted, T-Mobile will actually fold into the publicly traded MetroPCS, but it will control 74 percent of the company. The remaining 26 percent will be held by the current shareholders which will also split a cash pay out of $1.5 billion, or around $4.09 a share.

The bad news is that one hedge fund, P. Schoenfeld, has written a letter stating that it will use its 8.3 million shares, which accounts for about 2.3 percent of the company, against the deal. It is also urging others to do the same as it feels that deal is unfair to MetroPCS shareholders. Paulson & Co., another hedge fund with about 8.7 percent of the company to its name, has also indicated it may join the vote against the deal.

Should the deal go through, this would be a merfer of the fourth and fith largest mobile carriers in the U.S., but it still wouldn’t equal Sprint’s third place holdings.