| NEW YORK, March 3
NEW YORK, March 3 MetroPCS Communications Inc
is facing pressure from a major investor, demanding that
merger documents for the pending deal between MetroPCS and the
Deutsche Telekom AG's unit T-Mobile USA be updated to
reflect the earnings of T-Mobile.
P. Schoenfeld Asset Management LP, whose holdings represent
about 2 percent of MetroPCS shares, told Reuters in a statement
on Sunday that the firm hoped "the company will again do the
right thing and incorporate the year-end results of both
MetroPCS and T-Mobile that were released this past week in their
updated proxy financials."
Representatives for MetroPCS and T-Mobile were not
immediately available for comment.
Final merger documents were published by the Securities and
Exchange Commission on Feb. 26, which raised eyebrows among the
investor community just two days before Deutsche Telekom
reported earnings results. Deutsche Telekom's operating profit
in the fourth quarter fell 13 percent as the company faced head
winds in its German mobile market and the rest of Europe.
MetroPCS reported a 65 percent fall in quarterly net profit
last week as revenue growth slowed for the eighth straight
Richardson, Texas-based MetroPCS agreed in October to a
reverse merger deal with T-Mobile USA that would leave Deutsche
Telekom with a 74 percent stake in the combined company.
MetroPCS will declare a 1-for-2 reverse stock split and pay $1.5
billion to its shareholders.
PSAM has publicly agitated against the merger between
Deutsche Telekom's unit T-Mobile USA and MetroPCS, indicating
that the current structure of the deal will leave the combined
company heavily burdened with $15 billion of debt and an
interest rate of as much as 8 percent.
Paulson & Co, the largest shareholder of MetroPCS, said on
Thursday that it would vote against the wireless service
provider's proposed merger with T-Mobile USA, unless the
companies sweeten the deal.
Paulson, owner of 36.3 million shares or 9.9 percent of
MetroPCS stock, said while the deal has strategic merits, the
merged company would have "too much debt at too high an interest
rate to be competitive" and it complained about the exchange
ratio for MetroPCS shareholders.
Meanwhile, MetroPCS on Friday said it would move the date of
its shareholders meeting back from March 28 to April 12 to
correct an administrative error.
"We are pleased that MetroPCS has decided to institute a new
record date of March 11 and moved the special meeting vote to
April 12, following our communication with the company
questioning the propriety of the record date," PSAM said in the