MetroPCS Jumps at Leap

Écrit par
Roy Mark
Roy Mark
Published: Sep 4, 2007
Updated: Feb 2, 2021
1 minute read
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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.

“We believe that the combination of MetroPCS and Leap is extremely compelling and will create significant value for the stakeholders of both companies,” Roger D. Linquist, MetroPCS chairman and CEO, said in a prepared statement.

“The combined company will create a new national wireless carrier with licenses covering nearly all of the top 200 markets in the United States.”

Like Leap, MetroPCS offers flat rate wireless service with no service contracts.

Leap Wireless was not available for comment on the proposed merger.

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