MetroPCS Merger Opposition Questions Chairman's Stock Selling
MetroPCS chairman and CEO Roger Linquist's recent selling of company shares prior to the proposed merger between MetroPCS and T-Mobile USA has caught the attention of a vocal opponent to the deal.
The P. Schoenfeld Asset Management hedge fund, or PSAM, filed a statement with the Securities and Exchange Commission, reasserting its opposition to the merger. The statement that it also put out as a press release today reads in part:
"We note that MetroPCS Chairman Roger Linquist recently sold approximately $20 million in PCS shares (representing approximately 28% of his share position in PCS) despite recently signing shareholder letters that communicated an expected post-transaction PCS share value that is 65% higher than the prices at which his recent sales occurred. If Linquist is so confident the Company will achieve these projected pro forma share values in the near future, why is he selling and not buying PCS shares?"
MetroPCS stockholders will have a chance to vote up or down on the merits of the company's proposed merger deal with T-Mobile USA at a special meeting to be held April 12. Schoenfeld says it will put out a "white paper" outlining its objections to the merger in the coming days.
P. Schoenfeld Asset Management says it and its investment advisory clients are "significant shareholders" of MetroPCS, with an aggregate position of more than 9,230,000 shares, representing almost $100 million in value at current prices.
The article MetroPCS Merger Opposition Questions Chairman's Stock Selling originally appeared on Fool.com.
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