MetroPCS takes offer for Leap Wireless off the table

By Lisa Kerner

Charlotte, N.C., Nov. 1 - MetroPCS Communications, Inc. said despite enthusiasm for the company's proposed merger with Leap Wireless International, Inc., MetroPCS has been unable to "engage Leap in meaningful negotiations." As a result, MetroPCS is withdrawing its merger proposal, according to a company news release.

On Sept. 17, Leap said the offer from MetroPCS was not in its shareholders' best interests.

In a news release on Thursday, Leap said its position regarding MetroPCS has not changed and it remains "open to substantive discussions concerning a strategic combination that is in the best interests of all of Leap's shareholders."

As previously reported, the proposal called for each outstanding share of Leap common stock to be exchanged for 2.75 shares of MetroPCS common stock for an estimated value of $77.89 per share. The deal was valued at some $5.5 billion including $2.0 billion of Leap's existing debt.

MetroPCS, a Dallas-based wireless communications service provider, expects new market launches by the end of 2008 or early 2009 in addition to growth in existing markets.

San Diego-based Leap is also a wireless services provider.

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