After the Federal Communications Commission cleared T-Mobile USA's bid for MetroPCS, it seemed like the proposed bid was a done deal. But it's quickly becoming apparent that's not the case at all.
Reuters reported on Monday that MetroPCS is now having to urge its shareholders to vote for the merger. According the international news service, the memo stressed "there could be no assurance that it would be able to deliver better shareholder value as a stand-alone wireless company."
Things took a bad turn last week for the deal following remarks made by T-Mobile CEO John Legere, who said he expects the deal to go through.
However, his remarks also included swearing and inappropriate remarks, thus prompting MetroPCS shareholders Paulson & Co along with P. Schoenfeld Asset Management to assert publicly that they are voting against the merger.
Shareholders are scheduled to vote on April 12.
To recall, word broke last October that Deutsche Telekom, T-Mobile USA's parent company, was in talks to acquire MetroPCS and merge it with the German telecommuncations company's U.S. arm.
T-Mobile USA is the fourth largest mobile provider in the United States, followed by MetroPCS.
But MetroPCS offers T-Mobile entry into many more smaller markets nationwide, giving it a firmer footing and new demographics to compete against Verizon Wireless, AT&T, and Sprint.
In March, the Department of Justice let the mandated 30-day waiting period expire -- a solid contrast to what happened previously with AT&T's bid for T-Mobile. Shortly thereafter, the FCC also confirmed its approval.