An investment adviser to shareholders holding about 7.5 million shares of MetroPCS Communications Inc said it intends to vote against the company's proposed merger with T-Mobile USA due to the deal valuation and debt levels that come with it.P. Schoenfeld Asset Management LP (PSAM), whose holdings represented about 2 percent of MetroPCS shares on Oct. 19, said it sent a letter to the boards of MetroPCS and T-Mobile USA's parent Deutsche Telekom AG, on Jan. 30 complaining about the deal.MetroPCS responded by saying that it still recommends the T-Mobile USA deal but that it would "carefully review and consider" the perspective of P. Schoenfeld Asset Management.The investment firm said the deal did not offer a high enough valuation for MetroPCS shareholders and would load down the company with debt levels it believes are "unsustainable" for the size of the company and its credit rating.
MetroPCS Communications, Inc. provides wireless personal communication services. Shares of PCS traded higher by 0.15% or $0.015/share to $9.72. In the past year, the shares have traded as low as $5.53 and as high as $14.51. On average, 7256940 shares of PCS exchange hands on a given day and today's volume is recorded at 3051950.
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