NEW YORK Feb 28 Paulson & Co, the largest
holder of MetroPCS Communications Inc stock, said on
Thursday it intends to vote against the wireless service
provider's proposed merger with T-Mobile USA, a unit of Deutsche
Paulson, an owner of 36.3 million shares or 9.9 percent of
MetroPCS stock, is following in the footsteps of another
shareholder, P. Schoenfeld Asset Management LP (PSAM). PSAM,
whose holdings represented 1.66 percent of MetroPCS shares at
year end, is leading a proxy battle against the merger.
Paulson said the merged company would have "too much debt at
too high an interest rate to be competitive."
It said it believes MetroPCS is worth more as a stand-alone
company as it will be free to pursue its successful stand-alone
strategy while seeking higher value strategic transactions.
MetroPCS agreed to merge with T-Mobile USA in October, in a
reverse merger deal that would leave Deutsche Telekom with a 74
percent stake in the combined company. As part of the deal
MetroPCS will declare a 1-for-2 reverse stock split and pay $1.5
billion in cash to its shareholders.