Hedge fund Paulson &...
Hedge fund Paulson & Co., MetroPCS’s largest shareholder, said Wednesday it “strenuously objects” to T-Mobile USA CEO John Legere’s criticism of opponents of the proposed Mobile/MetroPCS combination as “greedy hedge funds.” Paulson, which owns 9.9 percent of MetroPCS, said earlier…
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this month that it will vote against the transaction based on the current terms of the deal (CD March 4 p8). Legere does not own MetroPCS stock and “wants the best deal” for T-Mobile owner Deutsche Telekom, rather than MetroPCS, Paulson said in a news release. “If anyone is being greedy here, it is Deutsche Telekom by stripping out $15 billion of senior debt at above market rates and terms for themselves before the proforma shareholders get anything,” Paulson said. “MetroPCS shareholders are left with a subordinated minority stake in an over leveraged equity stub.” Paulson said it believes in carrier consolidation, but MetroPCS is worth more as a standalone carrier than combined with T-Mobile under the current deal terms. Deutsche Telekom should “significantly reduce the debt they are taking back and/or dramatically increase MetroPCS’s proforma share of the combined company” to win the support of MetroPCS shareholders,” Paulson said (http://prn.to/10agofI). Shareholders are set to vote on the proposed merger April 12. A spokesman for T-Mobile had no immediate comment.