Few Good Choices for MetroPCS

MetroPCS and T-Mobile USA are preparing to tie the knot. But some investors object to the union. And at least some aren't making a secret of it.

They say they would reconsider their opposition if the deal were revised. Their arguments, which Deutsche Telekom disputes, may have some merit. Heavy debt loads kept rival Sprint Nextel from upgrading its network for years. And obviously, forcing T-Mobile to renegotiate the terms of the deal would be a boon for Metro PCS shareholders. But the hedge funds need to make the case that MetroPCS has other options. They claim MetroPCS would be better off as a stand-alone company than under the current T-Mobile offer. Yet MetroPCS posted its third consecutive quarter of net subscriber losses in January. And analysts say the company lacks the capital to build a competitive next-generation LTE network. Moreover, other prospective MetroPCS buyers haven't materialized.