MetroPCS Jumps at Leap
MetroPCS proposes $5 billion stock swap merger with Leap Wireless.MetroPCS Communications said on Sept. 4 that it is interested in merging with Leap Wireless in a tax-free stock swap valued at more than $5 billion. If Leap accepts the offer, the merger would create the fifth largest wireless carrier in the United States. According to the merger proposal letter from Dallas-based MetroPCS, each outstanding share of Leap common stock would be exchanged for 2.75 shares of MetroPCS common stock. MetroPCS said the exchange rate creates a value of $77.89 for each share of Leap. MetroPCS will also assume about $2 billion of the San Diego-based Leaps debt.
MetroPCS would own approximately 65.4 percent of the merged company.