Leap Wireless (LEAP) Hires Advisor To Explore a Sale
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Leap Wireless International Inc. (NASDAQ: LEAP) is looking to sell or merge with a rival company, according to a report in the Wall Street Journal report that stated the cellular provider has hired advisers and created a special board of members to look into the company’s options.
The source cited in the report said that Leap has reached out to AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), and Vodafone Group PLC (NYSE: VOD) to see what the interest in a deal would be.
Leap has traditionally provided service to the low-end of the market, but is now being pressured by bigger competitors that are lowering the price of contracts and the growing prepaid market.
According to the sources, a deal Metro PCS Communications Inc. (NYSE: PCS) makes the most sense and that Leap is simply trying to find another suitor to push the price up on its closest rival.
Leap rejected a $4.7 billion offer from Metro PCS two-and-a-half years ago. Since then Leap shares have declined to a market capitalization of around $1 billion.
Leap currently has around 4.7 million customers and has hired Goldman Sachs to advise the potential of a move.
Shares of Leap are flat in the afterhour's market at $14.90 after surging in the final hour of trading. Shares closed the session up 13.1%.
The source cited in the report said that Leap has reached out to AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), and Vodafone Group PLC (NYSE: VOD) to see what the interest in a deal would be.
Leap has traditionally provided service to the low-end of the market, but is now being pressured by bigger competitors that are lowering the price of contracts and the growing prepaid market.
According to the sources, a deal Metro PCS Communications Inc. (NYSE: PCS) makes the most sense and that Leap is simply trying to find another suitor to push the price up on its closest rival.
Leap rejected a $4.7 billion offer from Metro PCS two-and-a-half years ago. Since then Leap shares have declined to a market capitalization of around $1 billion.
Leap currently has around 4.7 million customers and has hired Goldman Sachs to advise the potential of a move.
Shares of Leap are flat in the afterhour's market at $14.90 after surging in the final hour of trading. Shares closed the session up 13.1%.
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